Roark Capital Group has agreed to acquire certain individual equity interests of Culver Franchising System (BDA Culver’s) which in aggregate constitute a minority equity position in the company. The Culver family will maintain a majority ownership of the company.
“For many years the Culver family has been discussing ownership succession planning with the desire to remain a family-owned business, stay privately held and proceed with thoughtful estate planning,” said company co-founder and board chairman Craig Culver. “The sale of a minority interest in the company allows us to do so. We want to make sure we set up the next generation of the Culver’s family and the entire franchised system for success.”
Culver’s is a privately owned and operated fast casual restaurant chain that operates primarily in the Midwest region of the United States. The chain’s signature items are its trademarked ButterBurger, frozen custard, and deep-fried cheese curds.
The first Culver’s was opened in July 1984 in Sauk City, WI by Craig and Lea Culver and Craig’s parents, George and Ruth. Currently there are more than 630 Culver’s restaurants in 24 states. The company, led by CEO Joseph Koss, is headquartered northwest of Madison in Prairie du Sac, WI (www.culvers.com).
As part of the agreement between Roark and Culver’s, Roark will have representation on Culver’s board of directors and Craig Culver will continue to serve as Chairman of the Board. Mr. Koss and other members of the senior management team will remain in their current roles. Culver’s has no plans to sell additional shares.
“We have long admired the Culver’s brand and its commitment to culture, quality and service. We are excited to be partnering with the Culver family and management team, and look forward to supporting the brand’s continued success,” said Erik Morris, Senior Managing Director at Roark.
Roark Capital Group invests in franchised and multi-unit business models in the retail, restaurant, consumer and business services sectors. Since inception, Roark has invested in 61 franchise/multi-unit brands which collectively generate $25 billion in annual system revenues from 28,000 locations in 50 states and 78 countries.
Roark’s largest sector, food and restaurants, has encompassed 20 investments in brands such as: Arby’s, CKE Restaurants (the owner of Carl’s Jr and Hardee’s), Corner Bakery, FOCUS Brands (the owner of Auntie Anne’s Pretzels, Carvel Ice Cream, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s), Il Fornaio, Jim ‘N Nick’s Bar-B-Q, Jimmy John’s, Miller’s Ale House, Naf Grill, and Wingstop.
Robert W. Baird & Co. was the financial advisor to Culver’s on this transaction.
© 2017 Private Equity Professional | October 16, 2017
