Transaction provided working capital and helped pay a shareholder dividend.
Levine Leichtman Capital Partners (“LLCP”), a private equity firm headquartered in Los Angeles, California, has announced a completed recapitalization for Global Franchise Group, LLC (“GFG”), a portfolio company of Levine Leichtman Capital Partners IV, L.P.
“We are pleased to have completed this divided recapitalization for GFG, which provided working capital and paid a shareholder dividend,” said Arthur Levine, president of Levine Leichtman Capital Partners.
Mr. Levine added, “This is the second time in the last two years GFG was able to recapitalize its balance sheet, demonstrating the company’s superior financial performance, cash generating ability and strong base of franchise brands.”
Recapitalization by private equity groups such as LLCP is a common practice. Investments by LLCP bring financial and operational experience to business partners, while at the same time, allows the owners of the business to maintain meaningful equity stakes in their companies.
Since 1984, Levine Leichtman Capital Partners has provided entrepreneurs with long-term capital and financial expertise. LLCP makes investments into middle market companies utilizing its structured equity investments approach. Previous investments include Santa Cruz Nutritionals, CiCi’s Pizza, Hackney Ladish, and Luminator Technology Group.
As a strategic brand management company with a focus on franchising, Global Franchise Group, LLC owns a portfolio of franchise brands that includes multiple quick service restaurant (QSR) franchise concepts. The company has a solid reputation for the support it provides to nearly 1,100 franchised and corporate stores in over 16 countries across the globe.
The GFG recapitalization is one of many recent successful transactions that LLCP has handled. The senior credit facility was provided by Ares Capital Corporation, Bank of Montreal and NXT Capital.