- WHITE PAPERS
Dallas-based Mitra QSR KNE LLC and its capital partner, Chalak Growth Capital Fund LLC, recently closed on a large acquisition of KFC/Taco Bell units in the Northeast part of the U.S. for an undisclosed amount. The acquisition was made from the brands' parent company Yum! Brands.
The transaction includes 78 KFC units, 39 KFC/Taco Bell co-branded units, and three KFC/Long John Silver's co-branded units. The 120 unit transaction spreads across six states, including Virginia, Maryland, Delaware, Pennsylvania, West Virginia and New Jersey.
The Mitra team is led by co-CEOs Pushpak and Manish Patel. The Chalak team is headed by the principals of The Chalak Group Inc., who in addition to being the private equity capital source behind the transaction, are also owners and operators of Genghis Grill-The Mongolian Stir Fry, and the regional fast casual chain Baker Bros-American Deli.
The principles of Mitra and Chalak are also partners together in 33 additional KFC/Taco Bell units in Texas, Oklahoma, Kansas, Missouri and Illinois. This transaction makes Mitra one of the largest KFC franchisees in the system.
"Being one of the biggest divestures that KFC Corporation has ever undertaken, this was a very complex transaction between Yum Brands Inc.'s M&A division, KFC Corporation, Taco Bell Corporation, Wells Fargo and Mitra. It was however, extremely amazing how all of the teams came together to make this transaction a reality," said Manish Patel.
The transaction finalized in Mid-August and the transition has been underway since. Mitra retained all of the employees from a unit-level standpoint and above-store-level standpoint. There are two corporate offices, one based in Dallas and a regional office for support services based in the Northeast.
Haynes and Boone LLP represented Mitra on the transaction as counsel, Metropolitan Capital Advisors served as the Investment Banking firm and Wells Fargo Restaurant Finance provided the debt behind the transaction.
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