The Ontario Teachers’ Pension Plan is getting into the restaurant business.
It’s investing about US$300 million in Flynn Restaurant Group (FRG), the largest restaurant franchise group in the United States.
FRG’s management team, led by its founder, chairman and CEO, Greg Flynn, also participated in the investment and has significantly increased its direct ownership position in the company as a result of the transaction.
“We are pleased to welcome Ontario Teachers’ as an investor,” Flynn says. “They have access to large amounts of evergreen capital, and they do not face any of the issues related to fund timing that conventional private equity firms face.”
Teachers’ Private Capital (TPC) and FRG management purchased the stake from an investment fund managed by Goldman Sachs and private equity firm Weston Presidio.
“FRG has experienced tremendous growth since its founding, and we see a number of opportunities for additional expansion,” says Jane Rowe, senior vice-president of TPC. “We are excited to have the opportunity to support Greg and his team as they continue to execute their strategic plan and enter the next stage of their growth.”
FRG operates 470 Applebee’s and 170 Taco Bell restaurants generating $1.4 billion in annual sales. The company employs about 36,000 people in 27 states.
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