Growth Capital • Business Services

ABS Capital Partners, Tonka Bay Equity Partners, Gemini Investors, Parthenon Capital, Crestar Partners and Convergent Capital Partners Invest In Restaurant Technologies

On June 1, 2002, private equity firm ABS Capital Partners, private equity firm Tonka Bay Equity Partners, private equity firm Gemini Investors, private equity firm Parthenon Capital, private equity firm Crestar Partners and growth capital firm Convergent Capital Partners invested in business services company Restaurant Technologies

Investment Context
  • This is ABS Capital Partners’ 2nd, Tonka Bay Equity Partners’ 1st, Gemini Investors’ 1st, Parthenon Capital’s 1st, Crestar Partners’ 1st and Convergent Capital Partners’ 3rd transaction in the Business Services sector.
  • This is ABS Capital Partners’ 11th, Tonka Bay Equity Partners’ 2nd, Gemini Investors’ 10th, Parthenon Capital’s 4th, Crestar Partners’ 1st and Convergent Capital Partners’ 9th transaction in the United States.
  • This is ABS Capital Partners’ 1st, Tonka Bay Equity Partners’ 1st, Gemini Investors’ 2nd, Parthenon Capital’s 1st, Crestar Partners’ 1st and Convergent Capital Partners’ 4th transaction in Minnesota.
Investment Fate
  • Restaurant Technologies was sold to a consortium of financial buyers in 2011.
  • Restaurant Technologies was sold to a consortium of financial buyers in 2015.
  • Restaurant Technologies was sold to a consortium of financial buyers in 2018.
  • Restaurant Technologies was sold to a consortium of financial buyers in 2022.

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Investment Summary

Date June 1, 2002
Target Restaurant Technologies
Sector Business Services
Investor(s) ABS Capital Partners
Tonka Bay Equity Partners
Gemini Investors
Parthenon Capital
Crestar Partners
Convergent Capital Partners
Deal Type Growth Capital

Target Company

Restaurant Technologies

Mendota Heights, Minnesota, United States
Restaurant Technologies is a foodservice industry partner, serving more than 32,000 quick-service and full-service restaurant chains, independent restaurants, grocery delis, hotels, casinos, universities, and hospitals nationwide. The company helps make foodservice operations safer, smarter, and more efficient through cooking oil and hood and flue management solutions. It has a long history of sustainability, working with partners to provide used cooking oil as input into renewable diesel and biodiesel, creating an ESG-friendly process of recycled used cooking oil for its customers. Restaurant Technologies was formed in 1996 and is based in Mendota Heights, Minnesota.
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Investors Overview 6

Investor

ABS Capital Partners

Hunt Valley, Maryland, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1990
PE ASSETS 2.5B USD
Size Large
Type Sector Agnostic
DESCRIPTION

ABS Capital Partners is a private equity firm that invests in later-stage growth companies in the healthcare, technology, business services, media and communications sectors. ABS provides capital to help fund growth, provide shareholder liquidity, pursue acquisitions, or to effect a management buyout. The Firm prefers US based business and will consider both majority and minority positions. ABS looks to commit $10 to $25 million per transaction. ABS Capital was formed in 1990 and has offices in Baltimore, Maryland; Waltham, Massachusetts; and San Francisco, California.


Deal Context for Investor #
Overall 11 of 65
Sector: Business Services 2 of 7
Type: Growth Capital 1 of 16
State: Minnesota 1 of 2
Country: United States 11 of 63
Year: 2002 2 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-05-29 Payspan

Jacksonville, Florida, United States

Payspan provides payment solutions for health plans and providers seeking to increase provider adoption of electronic payments, engage patient members, and accelerate quality care. Payspan was founded in 1984 and is based in Jacksonville, Florida.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2002-10-15 Cord Blood Registry

San Bruno, California, United States

CBR Systems is a late-stage medical devices company with the leading market position in providing the collection, processing and cryogenically-frozen storage of stem cells.

Buy -
Investor

Tonka Bay Equity Partners

Minnetonka, Minnesota, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 560M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Tonka Bay Equity Partners is a Midwest US-based private equity firm that targets control and non-control investments in manufacturing, business services, and value-added distribution companies with at least $2 million of EBITDA. Tonka Bay will consider a variety of transaction situations, including management buyouts, shareholder liquidity events, recapitalizations, and expansions. Tonka Bay Equity Partners was formed in 1998 and is based in Minnetonka, Minnesota.


Deal Context for Investor #
Overall 2 of 34
Sector: Business Services 1 of 5
Type: Growth Capital 1 of 12
State: Minnesota 1 of 11
Country: United States 2 of 33
Year: 2002 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2000-01-01 Tecnocap

Glen Dale, West Virginia, United States

Tecnocap LLC is a manufacturer of metal caps and closures. Penn Wheeling is a manufacturer of metal lid closures for glass jars used in applications including specialty food, personal care, pharmaceutical and other niche products. The company also has captive lithographic capabilities that allow it to compete across its diverse customer base for custom, fast turn around, short-run opportunities.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-06-01 Coast Composites

Irvine, California, United States

Coast Composites, Inc. is a designer and manufacturer of an aerospace tooling systems for defense and commercial aerospace and space/satellite industries.

Buy -
Investor

Gemini Investors

Wellesley, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1993
PE ASSETS 700M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Gemini Investors is a middle-market private equity firm that targets investments in growing and established businesses. Areas of interest include technology, business services, consumer services, healthcare, education, manufacturing and distribution. Gemini looks for companies with $5 to $50 million in annual revenue and typically makes investments of $3 to $8 million in the form of preferred stock and/or subordinated debt. Prospective transaction types include growth capital, recapitalization and buyout situations. Gemini Investors was formed in 1993 and is based in Wellesley, Massachusetts.


Deal Context for Investor #
Overall 10 of 129
Sector: Business Services 1 of 18
Type: Growth Capital 2 of 39
State: Minnesota 2 of 6
Country: United States 10 of 129
Year: 2002 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2002-05-23 Axcelerant

Redwood Shores, California, United States

Operator of corporate broadband virtual private network related services. (Acquired by iPass)

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-12-01 Axcelerant

Redwood Shores, California, United States

Operator of corporate broadband virtual private network related services. (Acquired by iPass)

Sell -
Investor

Parthenon Capital

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1998
PE ASSETS 5.5B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Parthenon Capital is a private equity firm focused on investing in service-based businesses with recurring revenues, defensible niches and competitive advantages. Parthenon looks for businesses valued between $75 and $750 million operating in sectors that include business services, financial services, manufacturing, technology-enabled services, and distribution/logistics. Prospective transaction types include recapitalizations, management buyouts, acquisitions, privatizations, and growth capital financings. Parthenon Capital was formed in 1998 and has offices in Boston, Massachusetts and San Francisco, California.


Deal Context for Investor #
Overall 4 of 63
Sector: Business Services 1 of 15
Type: Growth Capital 1 of 18
State: Minnesota 1 of 1
Country: United States 4 of 62
Year: 2002 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-12-19 SSG Precision Optronics

Wilmington, Massachusetts, United States

SSG Precision Optronics, Inc. is a designer and supplier of sophisticated optical systems for prime contractors that provide satellite and tactical systems for the military and government.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2002-08-02 Arrow Financial Services

Niles, Illinois, United States

Arrow Financial Services LLC is a full-service accounts receivable management company that purchases charged-off debt, conducts contingency collection work and performs third-party receivables servicing across a number of consumer asset classes.

Buy -
Investor

Crestar Partners

Boca Raton, Florida, United States

Investor


Category Private Equity Firm
Founded 2003
Size Small
Type Sector Agnostic
DESCRIPTION

Crestar Partners is a private equity firm focused on investing and acquiring early, growth, and mature companies. Crestar targets profitable businesses, with sustainable competitive advantages. Areas of interest includes value added distribution, direct marketing, specialty finance, consumer products and differentiated businesses services. The Firm looks to be flexible provider of capital, including providing debt and equity. Crestar Partners was formed in 2003 and is based in Boca Raton, Florida.


Deal Context for Investor #
Overall 1 of 10
Sector: Business Services 1 of 2
Type: Growth Capital 1 of 3
State: Minnesota 1 of 1
Country: United States 1 of 10
Year: 2002 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2003-08-15 USM

Norristown, Pennsylvania, United States

USM, Inc. dba US Maintenance, Inc. is a leading outsourced facilities maintenance company. The Company currently provides outsource contract management services in more than 50,000 locations throughout the U.S., in the areas of janitorial services and floor care, landscaping and snow removal, sign and lighting maintenance and repair and disaster restoration services. Some of its blue chip customers include: Bed, Bath and Beyond, Starbucks, The Gap, Comp USA, Fleet Bank, Roadway Express and many others.

Buy -
Investor
DESCRIPTION

Convergent Capital is a private investment firm that provides growth and debenture financing to late-stage growth companies. Convergent prefers to commit $3 to $12 million per transaction in businesses with at least $10 million in revenues. Convergent is a generalist investor and will consider businesses in a wide range of industries. Investment funds are typically used to assist growth, but the firm can also structure investments around buyouts, recapitalizations, consolidations, and add-on acquisitions. Convergent is licensed as a SBIC. Convergent Capital was formed in 1999 and is based in Minneapolis, Minnesota.


Deal Context for Investor #
Overall 9 of 62
Sector: Business Services 3 of 11
Type: Growth Capital 8 of 16
State: Minnesota 4 of 12
Country: United States 9 of 62
Year: 2002 1 of 4
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2001-10-01 Healthy Pet

Shelton, Connecticut, United States

Healthy Pet Corp. is an operator of veterinary hospitals in the eastern United States.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2002-08-01 The Miner Group International

Minneapolis, Minnesota, United States

The Miner Group International, headquartered in Minneapolis, MN, is a vertically integrated development manufacturer and marketer of specialty print-based products for children.

Buy -