Global buyout major Partners Group has agreed to sell Taco Bell US franchisee Pacific Bells to special situations investor Orangewood Partners.
Founded in 1989, Pacific Bells has over 250 restaurants and more than 6,000 employees in the US. It is the fifth largest Taco Bell franchisee in the country with footprint across nine states.
The firm said the company has been resilient through COVID-19 due to its drive-thru operating model, value-oriented menus and strong branding.
Partners Group said the company has almost tripled the number of stores from 86 at the time of investment six years ago. It has also entered into new markets including in Wisconsin, California, Mississippi, Tennessee, and Alabama during the investment period.
Sujit John, managing director, private equity at Partners Group, says, “Pacific Bells is strongly positioned in the fast-growing, highly fragmented quick restaurant service sector and enjoys resilient cashflows.
“Together with Pacific Bells’ best-in-class management team, we have successfully transformed the Company through integrating new acquisitions and investing in technology, which has aided faster delivery times and underpinned strong sales growth, ultimately leading to a great outcome for our clients. We leave Pacific Bells well-placed for further expansion under its new ownership and wish the team well on this next stage of the Company’s growth.”
Partners Group raised $6bn for the final close of its fourth flagship direct equity fund in Septembers, and another $9bn through related private markets programmes and bespoke client solutions that will invest alongside the fund.
Orangewood Partners, launched by ex-Carlyle exec Alan Goldfarb, raised more than $300m of new fund capital in March.
Other major private equity deals in the fast-food chain industry include HIG buying into Quick Restaurants from Burger King France in August.
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