Fireman Capital Partners has acquired a majority stake in Surfside Coffee Company, a newly created business that will own the Dunkin’ Donuts franchise network based in southern Florida. Surfside was created through the purchase of two Dunkin’ Donuts franchise networks. Terms of the deal were not disclosed.
Fireman Capital Partners (“FCP”), a consumer-focused growth equity firm, today announced that it has acquired a majority stake in Surfside Coffee Company, LLC (“Surfside”), a newly created entity that will own the Dunkin’ Donuts franchise network based in southern Florida. Surfside was recently formed through the purchase of two Dunkin’ Donuts franchise networks and is now the largest Dunkin’ Donuts franchise network in Florida. Terms of the transaction were not disclosed.
Surfside now operates 38 units in and around Fort Myers, Miami and the Florida Keys, and, as part of the purchase, assumed a Store Development Agreement (“SDA”) with Dunkin’ Donuts Franchising LLC (“Dunkin’”) for the development of a minimum of 23 new Dunkin’ Donuts restaurants in key Florida territories including Greater Miami.
FCP also announced that, as part of the transaction, Chris Mellgren, an experienced franchise network executive, will lead Surfside as Chief Executive Officer. Mr. Mellgren is a franchise industry expert and has played a key role in operating Dunkin’ Donuts franchise networks for over ten years. Mr. Mellgren most recently served as Chief Executive Officer of Morningside Venture Group (“MVG”), a 16 unit Dunkin’ Donuts Franchisee in the Orlando market.
“We are pleased to add significant resources and value to recently formed Surfside as it expands its footprint in southern Florida,” said Dan Fireman, Managing Partner of FCP. “With our extensive relationships in franchising, restaurant operations and the food and beverage industry, we are uniquely poised to move ahead on substantial new development, while maintaining our focus on customer satisfaction and existing unit growth.”
Liam Patrick, Partner at Fireman Capital Partners, added, “Dunkin’ Donuts is a remarkable brand, one we are excited to partner with, and we see their franchise model as attractive and highly scalable. Florida is a rapidly growing market, and we look forward to collaborating with the Dunkin’ Donuts’ team to expand and serve the brand’s base of extremely loyal customers.”
“I am thrilled to lead the Surfside team and work closely with FCP, an industry leader with a proven track record of growing successful retail and food and beverage companies,” said Mr. Mellgren. “I’ve been in and around the Dunkin’ Donuts system for over ten years, and I’ve never been more excited about the brand and the market opportunity in southern Florida.”
McDermott Will & Emery LLP acted as legal advisor to Fireman Capital Partners. TD Bank is serving as lender to Surfside Coffee Company.
About Fireman Capital Partners (FCP)
Fireman Capital Partners invests in consumer-focused companies through both growth equity and buyout transactions. The private equity firm focuses on dynamic consumer businesses with revenues between $20 and $150 million, and who have a unique vision and strong management. Fireman Capital leverages its capital, extensive relationships, and deep operating expertise to add substantial value. The firm is currently invested in Newton Running, IdeaPaint, Salt Lake Brewing Company, and Skip*Hop, with prior realized investments in innovative companies such as Hudson Jeans, Evolution Fresh and Serena & Lily.
About Dunkin’ Donuts
Founded in 1950, Dunkin’ Donuts is America’s favorite all-day, everyday stop for coffee and baked goods. Dunkin’ Donuts is a market leader in the hot regular/decaf/flavored coffee, iced coffee, donut, bagel and muffin categories. Dunkin’ Donuts has earned the No. 1 ranking for customer loyalty in the coffee category by Brand Keys for eight years running. The company has nearly 11,000 restaurants in 33 countries worldwide. Based in Canton, Mass., Dunkin’ Donuts is part of the Dunkin’ Brands Group, Inc. (Nasdaq: DNKN) family of companies. For more information, visit www.DunkinDonuts.com.