Golub Capital has provided a $35 million line of credit to Smashburger, a portfolio company of Consumer Capital Partners, to finance the company’s growth plans, which includes a planned 30% increase in new units during 2013.
Smashburger is a fast casual restaurant with more than 210 corporate and franchise restaurants operating in 29 states and in four international countries. Smashburger sells burgers, chicken sandwiches, salads, side items and shakes. Smashburger was launched in 2007 with an initial investment from Consumer Capital Partners. The company is based in Denver (www.smashburger.com).
Smashburger expects to open 50 to 60 company and franchise locations this year, ending the year at close to 250 locations and 300 units by the end of 2014. “At just over 200 locations today, we see significant runway for growth across the United States and internationally,” said Dave Prokupek, chairman and chief executive officer for Smashburger. “We are very pleased to partner with Golub Capital to access additional financing that will assist us in executing on our growth plans going forward.”
“We have known the Smashburger team for several years and believe the company is well positioned to become the industry leader in the better burger category and in the fast casual sector overall,” said Charles Riceman, managing director at Golub Capital. “We were impressed with Smashburger’s industry leading franchisees, as well as the company’s execution on its business goals to date and we look forward to being a part of the company’s success going forward.”
Golub offers buy-and-hold products ranging from $10 million to $75 million and includes one-loan financings, senior, 2nd lien and subordinated debt, preferred stock and co-investment equity. The firm underwrites and syndicates first lien loans up to $300 million. Golub Capital will hold up to $250 million per transaction. Industries of interest include consumer products, business and consumer services, defense, manufacturing, value-added distribution, media, healthcare services and restaurants. Golub has offices in New York and Chicago (www.golubcapital.com).
Consumer Capital Partners is a private investment, concept development and strategic advisory firm focused on multi-unit retail businesses, primarily in the restaurant, liquor, food and leisure industries. The firm was founded in 2006 by father and son team Rick Schaden and Richard Schaden. The Quiznos chain of restaurants was founded by Rick Schaden in 1991 and he served as the company’s President from founding until 2007. Consumer Capital Partners is headquartered in Denver (www.consumercp.com).
© 2013 PEPD • Private Equity’s Leading News Magazine • 6-26-13
