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Olympus sells K-Mac Holdings

Private equity firm Olympus Partners has sold K-Mac Holdings Corp, the third largest Taco Bell franchisee in the country, operating 167 Taco Bells, mainly in the Southwest. It also owns KFC and Golden Corral restaurants, which together with the Taco Bell stores total 190 premises.  

Olympus and management acquired K-Mac and its 144 stores at the end of 2004. Since then, the company has opened and/or acquired 46 restaurants and has expanded geographically in several other states. Cash flow has more than doubled since 2004.  Employment has increased by 30 percent.

Paul Rubin of Olympus Partners says: “K-Mac has been one of the most successful investments for Olympus, earning a return of more than eight times the initial equity funded by our investors. We were fortunate to back a very talented and seasoned management team supported by the strength of the Taco Bell brand, at a time when few private equity firms were comfortable investing in the franchisee space.”

Olympus was represented by John Schoenfeld and Roger Rhoten of Kirkland & Ellis LLP.

Lyle Wilpon, James Rourke, James Patterson, and Daniel Zarkowsky of Bank of America Merrill Lynch advised K-Mac and Olympus on the transaction.

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