Harvest Partners backs OTG

New York-based OTG Management, an operator of food and beverage concessions, has secured $250 million in funding. Harvest Partners SCF LP was the lead investor. Piper Jaffray & Co. provided financial advice to HP SCF on the transaction.

PRESS RELEASE

Harvest Partners SCF, LP (“HP SCF”), the non-control private equity strategy of Harvest Partners, LP, announced today it has led a $250 million investment in OTG Management (“OTG” or the “Company”), a leading New York-based operator of airport food and beverage concessions. The investment will support OTG’s continued expansion, accelerating the introduction of the Company’s modern, user-friendly offering to new airport locations. Terms of the transaction were not disclosed.

Founded in 1996, OTG operates proprietary restaurant concepts and offers concession management services in which it designs, develops, operates and manages entire terminal concession programs. The Company’s portfolio includes more than 230 restaurant locations at 26 terminals across 11 airports. OTG employs over 4,500 people and is led by the Company’s Founder and CEO, Rick Blatstein.

Jay Hegenbart, Senior Managing Director and Portfolio Manager for HP SCF, said, “Rick and the OTG team are pioneering the evolution of airport food and beverage programs. He is a creative leader, and exactly the type of founder/owner we seek to support with our flexible, non-control private equity investment solutions.”

“We are thrilled to partner with HP SCF to support continued growth at OTG, bringing our unique vision of tech-enhanced hospitality to more travelers,” added Rick Blatstein. “Building a team and maintaining a strong culture is an important part of delivering the ‘OTG Experience.’ Since we had our choice of partners for this investment, we took the same approach when selecting HP SCF.”

“OTG’s strategy puts the Company at the forefront of the hospitality sector, and positions it as a clear leader in airport foodservice,” said Sean Murphy, Principal at HP SCF. “It is no surprise that, as an acknowledgement of the Company’s success, OTG ranked among the World’s 50 Most Innovative Companies in Fast Company Magazine and has received numerous other awards and accolades.”

Through an innovative mix of dining, design and technology, OTG provides travelers across North America with award-winning restaurants created in partnership with more than 50 internationally and regionally acclaimed chefs. Together with the Company’s iPad platform, OTG is demonstrating that the airport experience can be elevated.

Caldwell Zimmerman and Jerry Chan of HP SCF also worked on the investment.

Piper Jaffray & Co. acted as a financial advisor to HP SCF and Latham & Watkins LLP served as legal counsel. Carnegie Hudson Resources Consulting LLC acted as OTG’s strategic advisor in connection with the transaction.

About Harvest Partners SCF
Harvest Partners SCF is a non-control private equity investor. HP SCF was founded in 2014 and is led by an experienced team of investment professionals who have, collectively, over 100 years of private equity investment experience. For business owners and entrepreneurs that need equity capital, HP SCF can provide flexible equity solutions and all of the resources and expertise of a private equity firm. Unlike traditional private equity, HP SCF allows entrepreneurs to retain control of their business in a structure that allows HP SCF to exit without forcing a future sale of the business. HP SCF is actively seeking new investment opportunities. Visit www.hp-scf.com for more information.

This announcement appears as a matter of record only. This does not constitute an offer to sell or a solicitation of an offer to purchase an interest in any current or future HP SCF or Harvest Partners, LP fund.

About OTG Management
OTG is a high-growth company that is transforming the airport travel experience for millions of travelers every year. OTG combines world-class hospitality and award-winning cuisine with innovative design and state-of-the-art technology. OTG’s restaurant concepts are complemented by the Company’s iPad experience, which was the first of its kind in its industry. Since 1996, OTG has been redefining the guest experience in airports, transforming the way passengers interact with the terminal. The Company is currently one of the leading airport food and beverage operators in North America with more than 230 restaurant and retail locations across 11 airports. Visit www.otgexp.com and www.ciboexpress.com for more information.