A 22 unit YUM! Brand franchisee operating in north central Indiana. KirTac operates 14 Taco Bells, 2 KFCs, 5 K-T’s and 1 Taco Bell Power Pumper restaurants with significant real estate holdings.
Brookwood was engaged by shareholders to sell the business.
Engagement Process and Outcomes
Compelling Business Characteristics – KirTac’s units were current as to required remodels and the company had no mission style buildings which is rare in the Taco Bell system. KirTac’s owner and CEO was looking to retire from the business and find the right purchaser who would take care of his long time employees.
Brookwood Process – Brookwood contacted both strategic buyers and private equity groups who would partner with the COO and CFO for a transaction. The process attracted nealy 30 bids, including several bids from sale/leaseback providers on the real estate assets.
Compelling Results – Brookwood sold KirTac’s operations to K-Mac Enterprises, an Olympus Partners portfolio company. K-Mac offered a strong price along with a good cultural fit for the employees of KirTac. Brookwood simultaneously negotiated the sale of the real estate in a sale/leaseback transaction in coordination with K-Mac to ensure that the terms of the sale/leaseback did not put undue burden on the operations going forward.
Press Release Excerpt
We are pleased to announce that Brookwood Associates advised the shareholders of KirTac, Inc. (the “Company”) on the sale of the Company to K-MAC Enterprises, Inc., a portfolio company of Olympus Partners. The Company is a Yum! Brands franchisee operating 22 Taco Bell and KFC restaurants in north central Indiana. At the time of the sale, the Company owned the majority of its real estate – the land and building at 17 of its restaurants and the building at one other restaurant. Highlights of the assignment included:
Finding the Right Partner: The CEO and majority owner was looking to retire from the business and find the right purchaser who would take care of his long time employees. Brookwood contacted strategic and financial buyers that would provide a good cultural fit for the Company.
Effective Marketing and Negotiating: The Company’s recent operating metrics were extremely strong and compared very favorably to other Yum! Brands franchisees. All required remodels were completed, and the Company had no remaining mission style (old format) buildings, which is very rare in the Taco Bell system. Brookwood highlighted the relevant selling points in its marketing process, which resulted in nearly 30 bids for the business and related real estate. Brookwood was instrumental in negotiating favorable terms for the shareholders.