Dallas, TX (RestaurantNews.com) Mitra QSR KNE, LLC (Mitra) and its capital partner, Chalak Growth Capital Fund, LLC (Chalak), recently closed on a large acquisition of KFC/Taco Bell units in the Northeast part of the United States for an undisclosed amount. The transaction includes 78 KFC units, 39 KFC/Taco Bell co-branded units, and 3 KFC/Long John Silver’s co-branded units. The 120 unit transaction spreads across 6 states (Virginia, Maryland, Delaware, Pennsylvania, West Virginia, and New Jersey). The Mitra team is led by Co-CEOs, Pushpak and Manish Patel. The Chalak team is headed by the principals of The Chalak Group, Inc., who in addition to being the private equity capital source behind the transaction, are also owners and operators of the 100 unit chain, Genghis Grill-The Mongolian Stir Fry, and the regional fast casual chain, Baker Bros-American Deli. The principles of Mitra and Chalak are also partners together in 33 additional KFC/Taco Bell units in Texas, Oklahoma, Kansas, Missouri, and Illinois. This transaction will make Mitra one of the largest KFC franchisees in the system.
“Being one of the biggest divestures that KFC Corporation has ever undertaken, this was a very complex transaction between Yum Brands, Inc.’s M&A division, KFC Corporation, Taco Bell Corporation, Wells Fargo and Mitra. It was however, extremely amazing how all of the teams came together to make this transaction a reality,” says Manish Patel, Co-CEO of Mitra, “we are excited about the prospects of this portfolio and incorporating all 3000+ team members into our culture and organization,” he says.
“Mitra has proven to be one of our strongest partners in the portfolio of companies we are involved in. Manish and Pushpak are strategic thinkers that have the clear aptitude to pull off an acquisition of this size. We see a continued bright future for both The Chalak Group and the Mitra team,” says Al Bhakta, Chief Executive Officer of The Chalak Group, Inc.
The transaction finalized in Mid-August and the transition has been underway since. Mitra retained all of the employees from a unit level standpoint and above store level standpoint. There are two corporate offices, one based in Dallas and a regional office for support services based in the Northeast.
“Becky Brown and her entire team at Wells Fargo exceeded our expectations as they guided us through the process,” said Pushpak Patel, Co-CEO of Mitra, “each member of the Haynes and Boone legal team as well as the folks at Metropolitan Capital Advisors all played a pivotal role in closing this deal.”
Haynes and Boone, LLP represented Mitra on the transaction as their counsel, Metropolitan Capital Advisors served as the Investment Banking firm and Wells Fargo Restaurant Finance provided the Debt behind the transaction.
The Chalak Group
About The Chalak Group
The Chalak Group, Inc. consists of a group of young dynamic entrepreneurs that own and operate multiple restaurant brands. In addition to owning and operating restaurant concepts, the group raises their own private equity capital for strategic growth and acquisition initiatives. Since the formation of the Chalak team in 1998, the group has raised close to $50 million in equity from private placements. The Chalak Group has a strong history of generating positive returns for their investors. The group currently owns and operates 260 restaurants and has investments in various hotel projects. The restaurants are Genghis Grill-The Mongolian Stir Fry which is a 100 unit chain based in Dallas, the 14 unit Baker Bros-American Del chain, a full service craft cocktail/scratch cooking concept called Pepper Smash, franchise partner with Mitra QSR in 150+ KFC/Taco Bell units in 12 states. For more information, visit www.thechalakgroup.com.
About Mitra QSR
Mitra, which means “friend, partner, and alliance”, stands as the underlying philosophy of the company. The Mitra team is led by Co-CEOs, Pushpak Patel and Manish Patel. In 2009, Mitra opened its first KFC/Taco Bell unit in Anna, TX and established themselves as strong operators in the YUM Brands system. An opportunity presented itself to buy out an existing franchisee with 32 units in the 4 states of Illinois, Kansas, Missouri and Oklahoma (Midwest). Over the last 2 years, Mitra has been able to successfully turn a declining Midwest market into a financially and operationally healthy market. Mitra prides itself on operational excellence, strong financial controls, and more importantly on building and providing opportunities to our #1 asset, OUR PEOPLE.
About Wells Fargo Restaurant Finance
Wells Fargo Restaurant Finance division provides financial services to corporate restaurant brands, large multi-unit restaurant franchisees, commercial real estate investors who own restaurant properties, private equity firms, and other investors in restaurant concepts.
About Metropolitan Capital Advisors
Since 1992, Metropolitan Capital Advisors has closed in excess of $8 billion of debt and equity transactions on behalf of a multitude of commercial property owners, developers and investors. National Real Estate Investor ranked Metropolitan Capital Advisors No. 20 on its Annual Top Financial Intermediaries list. Metropolitan Capital Advisors’ staff has expertise and capabilities in a vast array of debt and equity services, including construction and permanent debt, structured finance, and portfolio transactions. MCA Senior Director Sunny Sajnani advised Mitra and The Chalak Group throughout the transaction.
About Haynes and Boone, LLP
Haynes and Boone, LLP is an international corporate law firm with offices in Texas, New York, California, Washington, D.C., Mexico City and Moscow, providing a full spectrum of legal services. With more than 525 attorneys, Haynes and Boone is ranked among the largest law firms in the nation by The National Law Journal and has been named a “Top Corporate Law Firm in America” (Corporate Board Member Magazine, 2001-2012).