GE Capital, Franchise Finance, an operating unit of General Electric Company (GE), recently provided debt financing to Atlanta-based private equity firm Roark Capital to fund the acquisition of casual dining chain Miller’s Ale House in Jupiter, FL. In addition to the requisite funding for the strategic purchase, the transaction reinforced the mutual business relationship of Roark Capital with GE Capital.
With over $3 billion equity capital under management in its kitty, Roark Capital focuses on leveraged buyout investments in middle-market companies, primarily in consumer and business services firms. The company specifically emphasizes food and restaurant, specialty retail, environmental services, waste management, and marketing services sectors.
Roark Capital has reportedly invested in 22 franchise brands that have cumulatively generated over $10 billion in system sales with 50,000 points of distribution across 50 U.S. states and 56 countries around the world. The Miller’s Ale House acquisition marks its 26th multi-unit company, 13th restaurant brand and second full-service restaurant concept.
Since its inception in 1988, Miller’s Ale House has developed into a successful casual dining restaurant chain with approximately $300 million in system-wide sales. Each restaurant unit boasts a full-service bar featuring wine, liquor and over 75 varieties of beer. The restaurant chain was previously owned by private equity firm KarpReilly LLC and founder Jack Miller. With Roark Capital currently on helm, Miller’s Ale House is likely to get additional liquidity to generate more sales.
General Electric is one of the largest and the most diversified technology and financial services corporations in the world. With products and services ranging from aircraft engines, power generation, water processing and security technology to medical imaging, business and consumer financing, media content, and industrial products, the company serves over 100 million customers worldwide.
Its segments include Power & Water, Oil & Gas, Energy Management, Aviation, Healthcare, Transportation, Home & Business Solutions, and GE Capital. Over the years, GE Capital, Franchise Finance has provided loans for the franchise finance market either through direct sales or portfolio acquisition. With over $7 billion in served assets, it primarily serves mid-market operators in the restaurant and hospitality industries across diverse property locations.
General Electric has a Zacks Rank #3 (Hold). Other companies in the industry that are worth mentioning include United Technologies Corp. (UTX), ITT Corp. (ITT) and Marubeni Corp. (MARUY), each carrying a Zacks Rank #2 (Buy).
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