M&A Deal Summary

Seacoast Capital, Cave Creek Capital Management and Stewart Capital Management Acquire QK

On September 4, 2013, growth capital firm Seacoast Capital, private equity firm Cave Creek Capital Management and private equity firm Stewart Capital Management acquired restaurant QK

Acquisition Highlights
  • This is Seacoast Capital’s 2nd, Cave Creek Capital Management’s 3rd and Stewart Capital Management’s 2nd transaction in the Restaurants sector.
  • This is Seacoast Capital’s 19th, Cave Creek Capital Management’s 8th and Stewart Capital Management’s 6th transaction in the United States.
  • This is Seacoast Capital’s 2nd, Cave Creek Capital Management’s 3rd and Stewart Capital Management’s 1st transaction in Arizona.

M&A Deal Summary

Date 2013-09-04
Target QK
Sector Restaurants
Buyer(s) Seacoast Capital
Cave Creek Capital Management
Stewart Capital Management
Deal Type Recapitalization

Target

QK

Holbrook, Arizona, United States
QK operates 79 Denny's restaurants in six states (Arizona, New Mexico, Texas, Colorado, Utah and Oregon) and is the largest franchisee of Denny's restaurants in the world. In November of 2000, QK diversified and purchased its first Del Taco restaurant in Albuquerque, New Mexico. Today, they operate six Del Taco restaurants in New Mexico.

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Buyer(S) 3

Buyer

Seacoast Capital

Danvers, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Growth Capital Firm
Founded 1994
PE ASSETS 600M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Seacoast Capital is a private investment firm that invests equity and mezzanine capital in smaller companies with revenues greater than $10 million and at least $2 million in operating income. Sectors of interest include manufacturing, distribution, business services and industrial technologies. Seacoast has a particular interest in companies located in underserved urban and rural markets, and in all cases, partners with management when considering transactions. Seacoast Capital was formed in 1994 and has offices in Danvers, Massachusetts and San Francisco, California.


DEAL STATS #
Overall 19 of 46
Sector: Restaurants M&A 2 of 3
Type: Recapitalization M&A Deals 4 of 13
State: Arizona M&A 2 of 2
Country: United States M&A 19 of 46
Year: 2013 M&A 5 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-09-04 Denny s

Spartanburg, South Carolina, United States

Denny’s operates a network of casual dining restaurants serving breakfast, lunch, and dinner items across the United States and internationally. Denny's menu includes traditional diner fare such as pancakes, burgers, sandwiches, and salads, with many locations open 24 hours a day. Denny’s was founded in 1953 and is headquartered in Spartanburg, South Carolina.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2013-11-13 MATLET

Pawtucket, Rhode Island, United States

Matlet is a provider of point-of-purchase packaging solutions, specialty printing and fulfillment services primarily for the consumer products and casual dining end markets.

Buy -
Buyer

Cave Creek Capital Management

Scottsdale, Arizona, United States

Investor Investor Investor


Category Private Equity Firm
Founded 2004
Size Small
Type Sector Agnostic
DESCRIPTION

Cave Creek Capital Management is a growth investor with the flexibility of a family office, the talent of a major firm, and a much wider range of capital solutions than traditional Private Equity funds. Cave Creek looks to commit equity and mezzanine Investments of $5M to $25M and Companies with $20M to $150M of Revenues. Areas of interest include Business Services, Consumer Products & Services, Specialty Retail & Distribution, Healthcare Services, and Specialty Manufacturing. Cave Creek Capital Management was formed in 2004 and is based in Scottsdale, Arizona.


DEAL STATS #
Overall 9 of 12
Sector: Restaurants M&A 3 of 3
Type: Recapitalization M&A Deals 3 of 6
State: Arizona M&A 3 of 4
Country: United States M&A 8 of 11
Year: 2013 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-09-04 Denny s

Spartanburg, South Carolina, United States

Denny’s operates a network of casual dining restaurants serving breakfast, lunch, and dinner items across the United States and internationally. Denny's menu includes traditional diner fare such as pancakes, burgers, sandwiches, and salads, with many locations open 24 hours a day. Denny’s was founded in 1953 and is headquartered in Spartanburg, South Carolina.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-08-05 Tysers

London, United Kingdom

Tysers is a specialty commercial property & casualty insurance brokerage firm. Tysers serves as an intermediary between retail and/or wholesale insurance brokers to facilitate the placement of unusual, complex, or specialized coverages within the London market, notably to Lloyds of London, and global insurance markets. Tysers is headquartered in London, United Kingdom.

Sell -
Buyer

Stewart Capital Management

Overland Park, Kansas, United States

Investor


Category Private Equity Firm
Founded 2006
Size Small
Type Sector Agnostic
DESCRIPTION

Stewart Capital Management is a private equity firm that invests in middle-market companies headquartered throughout North America. Stewart focuses on companies with revenues in excess of $20 million and EBITDA greater than $3 million. Specific areas of interest include manufacturing, direct marketing, restaurant, and retail companies. The Firm will consider a variety of transaction types, including MBO’s, growth capital financings, recapitalizations and corporate divestitures. Stewart Capital Management was formed in 2006 and is based in Overland Park, Kansas.


DEAL STATS #
Overall 6 of 9
Sector: Restaurants M&A 2 of 2
Type: Recapitalization M&A Deals 1 of 3
State: Arizona M&A 1 of 1
Country: United States M&A 6 of 9
Year: 2013 M&A 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2013-09-04 Denny s

Spartanburg, South Carolina, United States

Denny’s operates a network of casual dining restaurants serving breakfast, lunch, and dinner items across the United States and internationally. Denny's menu includes traditional diner fare such as pancakes, burgers, sandwiches, and salads, with many locations open 24 hours a day. Denny’s was founded in 1953 and is headquartered in Spartanburg, South Carolina.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-14 Ajax Rolled Ring & Machine

York, South Carolina, United States

Ajax Rolled Ring & Machine is a manufacturer of seamless rolled rings. Ajax provides heat treating, machining, and shot blasting of the forged rings. The rings are consumed in various global end markets, including mining, construction, oil and gas, and power generation. Ajax Rolled Ring & Machine was founded in 1956 and is based in York, South Carolina.

Sell -