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K-Mac Enterprises in USD110m recapitalization

K-Mac Enterprises, a portfolio company of Olympus Growth Fund IV, has completed a USD110m recapitalization.

K-Mac, the second-largest Taco Bell franchisee, operates 130 Taco Bells.

It also operates Kentucky Fried Chicken and Golden Corral stores, giving K-Mac a total of 176 restaurants.
USD59m of the refinancing proceeds were used to pay a dividend to shareholders. Bonuses of USD2.7m were paid to 25 employees of K-Mac, in addition to their share of the dividend. The balance of the capital is available to grow K-Mac’s operations.
Olympus and management acquired K-Mac and its 144 stores at the end of 2004. Since then, the company has opened 32 restaurants and has begun doing business in several new states. Cash flow has more than doubled since acquisition and employment has increased by 20 per cent.
Founded in 1988, Olympus Partners focuses on companies in the business services, transportation and logistics services, healthcare manufacturing and services, financial services, consumer and restaurant and software and IT services sectors.

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