M&A Deal Summary

Lee Equity Partners Acquires K-MAC Enterprises

On December 20, 2016, private equity firm Lee Equity Partners acquired franchising company K-MAC Enterprises from Brentwood Associates and Arlon Group

Acquisition Highlights
  • This is Lee Equity Partners’ 1st transaction in the Franchising sector.
  • This is Lee Equity Partners’ 15th transaction in the United States.
  • This is Lee Equity Partners’ 1st transaction in Arkansas.
Investment Fate
  • K-MAC Enterprises was sold to a consortium of financial buyers in 2021.

M&A Deal Summary

Date 2016-12-20
Target K-MAC Enterprises
Sector Franchising
Buyer(s) Lee Equity Partners
Sellers(s) Brentwood Associates
Arlon Group
Deal Type Secondary Buyout
Advisor(s) Houlihan Lokey (Financial)

Target

K-MAC Enterprises

Fayetteville, Arkansas, United States
K-MAC is a YUM! franchisee, operating over 140 Taco Bell and KFC restaurants in Missouri, Oklahoma, and Texas. The company also operates golden corral restaurant franchises in Missouri. K-MAC Enterprises was founded in 1964 and is based in Fayetteville, Arkansas.

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Buyer(S) 1

Buyer

Lee Equity Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2006
PE ASSETS 5.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Lee Equity Partners is a private investment firm that looks for buyout and growth capital investments across a range of industries. Lee Equity Partners seeks investments requiring $50 to $150 million of equity capital. Lee Equity Partners was formed in 2006 and is based in New York, New York.


DEAL STATS #
Overall 16 of 40
Sector: Franchising M&A 1 of 1
Type: Secondary Buyout M&A Deals 4 of 13
State: Arkansas M&A 1 of 1
Country: United States M&A 15 of 34
Year: 2016 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-11-21 Carlile Bancshares

Forth Worth, Texas, United States

Carlile Bancshares, Inc. is a provider of buying small to regional banks that are looking for shareholder alternatives. Carlile Bancshares, Inc. was established in 2009 and is headquartered in Forth Worth, Texas.

Sell $434M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-02-16 Mackage

Montreal, Quebec, Canada

Mackage is a luxury outerwear brand specializing in all-season protection, blending responsible leathers, down, and wools with refined, fashion-forward design. Mackage was founded in 1999 and is based in Montreal, Quebec.

Buy -

Seller(S) 2

SELLER

Brentwood Associates

Los Angeles, California, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1972
PE ASSETS 2.4B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Brentwood Associates is a private equity firm focused on long-term investments in middle-market growth companies. Brentwood typically targets investments in consumer-related businesses. Specific areas of interest include action sports/outdoor lifestyle products, business services, consumer products/services, direct marketing, distribution, education, health/wellness, marketing services, specialty media, specialty retail, and sporting goods. Brentwood's preferred equity investment size is $50 to $200 million. Brentwood Associates was formed in 1972 and is based in Los Angeles, California.


DEAL STATS #
Overall 22 of 30
Sector: Franchising M&A 2 of 2
Type: Secondary Buyout M&A Deals 7 of 8
State: Arkansas M&A 1 of 1
Country: United States M&A 20 of 28
Year: 2016 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-12-13 Allen Edmonds

Port Washington, Wisconsin, United States

Allen Edmonds Corp. is a manufacturer of men’s premium handcrafted leather footwear and accessories. Allen Edmonds was founded in 1922 and is based in Port Washington, Wisconsin.

Sell $255M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-01-09 ClassWallet

Hollywood, Florida, United States

ClassWallet is an end-to-end digital solution to manage funding within school systems. The platform combines funds disbursement, e-commerce, a reloadable debit card, and tracking in a fully integrated manner designed for maximum simplicity and accountability. It brings accountability to a $23 billion system that relies heavily on cash, checks, and purchase orders that add up to 40 percent of transaction costs and a fund-spend-track lifecycle that takes weeks. ClassWallet is based in Hollywood, Florida.

Buy -
SELLER

Arlon Group


Category Private Equity Firm
Founded 2007
PE ASSETS 1.5B USD
Size Large
Type Sector Focused
DESCRIPTION

Arlon Group is a private equity group focused on the food sector. The Firm was formed in 2007 and is headquartered in New York City.


DEAL STATS #
Overall 4 of 7
Sector: Franchising M&A 1 of 2
Type: Secondary Buyout M&A Deals 2 of 2
State: Arkansas M&A 1 of 1
Country: United States M&A 3 of 6
Year: 2016 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-11-10 Sotran

Cambe, Brazil

Sotran focuses on outsourcing and vision in the provision of transportation and logistics services to the food and agribusiness industry. Sotran is based in Cambe, Brazil.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-07-18 CBL Alimentos

Fortaleza, Brazil

CBL Alimentos is a dairy company in the Northeast Region of Brazil, producing fluid milk, dairy drinks, and yogurt, among other dairy products. CBL Alimentos was founded in 1975 and is based in Fortaleza, Brazil.

Buy -