MONTREAL, Feb. 24, 2021 /CNW/ - Foodtastic Inc. ("Foodtastic") is pleased to announce that it has secured a $50 million investment from Restaurant Royalty Partners ("RRP"), a joint venture between funds managed by Oaktree Capital Management, L.P. ("Oaktree"), majority owned by Brookfield Asset Management Inc. (TSX: BAM.A), and JHR Capital LLC ("JHR Capital"). This capital is in addition to the $47 million RRP committed to Foodtastic in 2018.
Foodtastic's balance sheet is unleveraged and the company intends to raise debt financing to complement the $50 million of new RRP equity capital. Foodtastic will use these funds to continue the acquisition program that Foodtastic and RRP have successfully executed over the past two years.
Peter Mammas, President and Chief Executive Officer of Foodtastic, said, "Our partnership with RRP has allowed Foodtatsic to make 10 acquisitions, including such well know brands as, Rotisserie Benny and Monza. These new funds allow us to continue our acquisition strategy"
In addition, Foodtastic will continue to execute its asset-light organic growth plan. The company's franchisees plan to open 90 new restaurants over the next 30 months.
Patrick McCaney, Managing Director and Portfolio Manager for Oaktree, said, "Peter and his team at Foodtastic have a strong track record of value creation. They have built a high-quality business and we look forward to continuing to support the next stage of the company's growth."
Jordan Rubin, Managing Member for JHR Capital, said, "We are very excited about the future of Foodtastic. We believe our brands have great potential and are confident that management will continue to grow the company organically and will find quality restaurant concepts to acquire."
About Foodtastic
Foodtastic is a Quebec-based franchisor of multiple restaurant concepts including, La Belle et La Boeuf, Carlos & Pepe's, Souvlaki Bar, Nickels, and Bacaro. Foodtastic is a leader in the restaurant franchising business in Quebec with over 130 restaurants and $240 million in annualised sales.
SOURCE Foodtastic
Peter Mammas, President & CEO - Foodtastic, Tel: 514.691.5050, 9245 Thimens, Pierrefonds, QC, www.foodtastic.ca
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