Aurora Capital Partners has agreed to sell Minneapolis-based Restaurant Technologies Inc, a provider of automated cooking solutions for the U.S. restaurant and hospitality markets. The buyer is Goldman Sachs‘ merchant banking division. No financial terms were disclosed.
LOS ANGELES, Aug. 21, 2018 /PRNewswire/ — Private equity firm Aurora Capital Partners (“Aurora”) today announced that it has entered into a definitive agreement to sell Restaurant Technologies, Inc. (“RT” or the “Company”), the largest national provider of closed-loop automated cooking oil solutions to the U.S. restaurant and hospitality markets, to West Street Infrastructure Partners III (“WSIP III”), a family of infrastructure investment funds managed by the Merchant Banking Division of The Goldman Sachs Group, Inc. (“Goldman Sachs”). The terms of the transaction were not disclosed.
Based in Minneapolis, MN, RT offers fresh oil delivery, used oil removal, hood and exhaust cleaning solutions, and remote monitoring and data analytics under long-term customer contracts. The Company serves more than 25,000 customer locations across the U.S. out of a nationwide network of 41 depots and approximately 350 specialty designed vehicles. RT installs its cooking oil systems at no up-front cost to the customer, and oil delivery and removal services are scheduled automatically based on the Company’s remote monitoring of new oil levels in customer tanks. Once oil is removed it is sold to producers of biofuels to be used as a feedstock in the production of biodiesel.
“It has been exciting to work with the Company and institute a number of successful initiatives that have resulted in robust growth and market expansion over the last few years,” said Mark Rosenbaum, Managing Partner at Aurora. “RT has become a clear market leader with a strong value proposition for its customers and significant runway remains available to continue accelerating its growth trajectory. We wish the Company, its management and its new owners continued success.”
“The entire RT organization, led by President and CEO Jeff Kiesel, has done a tremendous job building the Company over the past few years and we appreciate their efforts in delivering a great outcome for our investors,” said Matthew Laycock, Partner at Aurora. “We are confident that the Company is well-positioned to continue its growth in current and adjacent markets within the broader foodservice industry.”
“We believe RT is an attractive infrastructure investment with an extensive installed asset base across 41 terminals and more than 25,000 customer locations, a diversified customer base, and strong recurring cash flow underpinned by long-term contracts,” said Edward Pallesen, head of the Infrastructure Investment Group for the Americas within the Merchant Banking Division of Goldman Sachs. “We are excited to partner with management to support the next phase of the Company’s growth.”
“Aurora has provided invaluable support and highly relevant resources and expertise that were critical in driving a transformative period of growth at RT,” said Jeff Kiesel, President and CEO of RT. “Looking ahead, we are thrilled to partner with the Goldman team as we continue to expand our market-leading technologies.”
Harris Williams served as lead financial advisor, Baird and Houlihan Lokey served as co-financial advisors and Gibson, Dunn & Crutcher LLP served as legal advisor to Aurora and the Company. Goldman Sachs & Co. LLC and RBC Capital Markets, LLC served as financial advisors and Weil, Gotshal & Manges LLP served as legal advisor for WSIP III.
About Aurora Capital Partners
Aurora Capital Partners is a leading private equity firm managing funds with total capital commitments of over $3 billion. Aurora focuses principally on control investments in middle-market companies with leading market positions, stable industry dynamics, attractive business model characteristics and actionable opportunities for growth in partnership with management. Aurora provides unique resources to its portfolio companies through its Strategy & Operations Program and its team of experienced operating advisors. Aurora’s investors include leading public and corporate pension funds, endowments and foundations active in private equity investing. For more information about Aurora Capital Partners, visit: www.auroracap.com.
About Goldman Sachs Merchant Banking Division
Founded in 1869, The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm. Goldman Sachs Merchant Banking Division is the primary center for the firm’s long-term principal investing activity. With nine offices across seven countries, Goldman Sachs Merchant Banking Division is one of the leading private capital investors in the world with equity and credit investments across infrastructure, corporate and real estate strategies. Since 1986, the group has invested approximately $180 billion of levered capital across a number of geographies, industries and transaction types.
Goldman Sachs Merchant Banking Division is one of the largest infrastructure fund managers globally, having raised more than $13 billion of capital since 2006. Through its infrastructure investment funds, Goldman Sachs Merchant Banking Division pursues investments in transportation, energy and utilities, communications, and other infrastructure assets around the world.
About Restaurant Technologies
A trusted partner for more than 20 years, Restaurant Technologies is the leading provider of cooking-oil management and back-of-house hood and exhaust cleaning solutions to over 25,000 national quick-service and full-service restaurant chains, independent restaurants, grocery delis, hotels, casinos, convenience stores, universities and hospitals. RT helps foodservice operators make their kitchens safer, smarter, more efficient and more sustainable through its automated oil storage, handling, filtration monitoring and disposal management systems and AutoMist™ automated exhaust cleaning solutions. Restaurant Technologies operates 41 depots and has more than 1,000 employees serving customers across the United States.