Private equity firm EQT will buy Restaurant Technologies Inc. from Parthenon Capital Partners and ABS Capital Partners. Financial terms of the deal were not released. RTI is a provider of cooking oil management services to the foodservice industry. The investment comes out of EQT Infrastructure, a 1.2 billion euro fund launched 2008 by EQT.
EQT Infrastructure has signed a definitive agreement to acquire all the outstanding stock in Restaurant Technologies, Inc. (RTI) from Parthenon Capital Partners and ABS Capital Partners. RTI is the leading provider of cooking oil management services to the foodservice industry. RTI will be EQT Infrastructure’s second investment in the United States and the investment leverages the fund’s knowledge of the food oil and waste industry from portfolio companies Koole and Kommunekemi.
Through operations in 36 depots across the United States, RTI distributes oil to customers to be stored in and managed by a proprietary oil management system, which is installed on-site at each customer location. This proprietary system allows customers to reduce oil usage, increase labor efficiencies, improve employee safety standards and improve overall oil management processes. Once the oil is used, the waste oil is collected by RTI for sale as feedstock to bio-diesel fuel refiners for sustainable energy.
RTI currently provides services to more than 17,000 customers under long-term contracts. Customers include the largest restaurant brands in the world. RTI generated revenues of approximately USD 250 million over the last twelve months. Thanks to RTI’s strong value proposition to its customers and its extensive infrastructure network, the company has been able to capture a significant market share for food oil management systems in major metro markets across the United States.
“We’re excited about this transaction as we believe it will allow us to provide even more services to our customers as we grow the business,” says Jeffrey Kiesel, CEO of RTI. “We know that EQT Infrastructure will develop an experienced Board of Directors with Industrial Advisors who will provide us valued guidance,” he continues. “Our management and sales teams are eager to implement EQT Infrastructure’s industrial acceleration business model to continue to expand the company and capture the growth opportunity ahead of us.”
Geoff Roberts will take the position as Chairman of the Board of RTI. Geoff Roberts is an Industrial Advisor to EQT and also serves on the Board of Midland Cogeneration Venture, another portfolio company of EQT Infrastructure. “RTI has significant opportunities for growth including the continued expansion of its depot network and the potential to provide additional services to its customers by leveraging its unique infrastructure,” says Geoff Roberts.
The transaction will be financed by a combination of equity and debt, and EQT Infrastructure will together with the Board of Directors and management own 100% of the equity interests in RTI. Details regarding financing are being finalized with potential lenders.
RBC Capital Markets acted as exclusive financial advisor and Weil, Gotshal and Manges LLP is legal advisor to EQT Infrastructure for this transaction. Closing of the acquisition is subject to anti-trust approval and is expected to occur in Q2 2011.
EQT is the leading private equity group in Northern Europe more than EUR 13 billion in raised capital and multiple investment strategies. Together with a superior network of Industrial Advisors, EQT implements its business concept by acquiring or financing good medium-sized to large companies in Northern and Eastern Europe, Asia and the United States, developing them into leading companies. Development is achieved by applying an industrial strategy with focus on growth. Since inception, EQT has invested EUR 9.7 billion in more than 85 companies and exited more than 40. EQT-owned companies have more than 500,000 employees.
EQT Infrastructure is a EUR 1.2 billion fund (launched 2008) investing primarily in existing infrastructure and has the flexibility to invest globally. Potential targets are basic infrastructure, concession-based infrastructure, social infrastructure and infrastructure-related services.
EQT Partners, acting as investment advisor to the managers of each EQT fund, has more than 100 investment professionals with an extensive industrial and financial competence. EQT Partners has offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York, Shanghai, Singapore, Stockholm, Warsaw and Zurich.
More information can be found on www.eqt.se
About Restaurant Technologies, Inc.
RTI is the developer, distributor and service provider of the foodservice industry’s leading automated solution for storing, handling and disposing of frying oil. The company’s innovative Total Oil Management solution has revolutionized foodservice safety and operations by eliminating the previous hazards and inconveniences of handling frying oil. RTI Data Management gives customers enhanced visibility and measurement through performance dashboards continually updated with data collected from equipment and other points in their operations.
Headquartered in suburban Minneapolis, Minn., with a growing number of depot sites strategically located across the U.S., RTI is a growing company, serving more than 17,000 foodservice customer sites with coverage in more than 75 percent of major metropolitan markets. For more information, please visit www.rti-inc.com.