Nation’s Restaurant News Tracks Industry’s M&A Activity

Portfolio Company News: K-Mac Holdings

The foodservice industry’s biggest players shifted billions of dollars in 2011 and 2012 through mergers and acquisitions, restaurant refranchising efforts and the booking of revenue from past deals, reports Nation’s Restaurant News. This year’s study by NRN, which accounts for revenue booked during the fiscal years ending closest to December 2011, saw aggregate U.S. foodservice revenue increase 8.75 percent to $122.72 billion.

Looking at the entire restaurant space, the number of chain restaurant merger-and-acquisition announcements in 2011 increased to 100, up 12 percent from the 89 recorded in 2010, according to investment bank J.H. Chapman Group LLC. Acquisitions within the buyer’s own brand were up 17 percent from the previous year, and equity funds also approached franchisees, representing eight transactions in the sector. This includes Brentwood Associates’ acquisition of K-Mac Holdings, a leading quick-service restaurant franchisee that is one of the largest Taco Bell franchisees in the country.