K-Mac Enterprises Completes Dividend Recap

Olympus Partners has sponsored a $110 million recapitalization of existing portfolio company K-Mac Enterprises Inc., the nation’s second-largest Taco Bell franchisee. The deal included a $59 million dividend for existing shareholders, $2.7 million in bonuses to 25 K-Mac employees and the remainder will be used as working capital.


K-Mac Enterprises, Inc., a portfolio company of Olympus Growth Fund IV, L.P., is pleased to announce a $110 million recapitalization. K-Mac, the second-largest Taco Bell franchisee, operates 130 Taco Bells. It also operates Kentucky Fried Chicken and Golden Corral stores, giving K-Mac a total of 176 restaurants.

$59 million of the refinancing proceeds were used to pay a dividend to shareholders. Bonuses of $2.7 million were paid to 25 employees of K-Mac, in addition to their share of the dividend. The balance of the capital is available to grow K-Mac’s operations.

Olympus and management acquired K-Mac and its 144 stores at the end of 2004. Since then, the company has opened 32 restaurants and has begun doing business in several new states. Cash flow has more than doubled since acquisition and employment has increased by 20 percent.

About Olympus Partners
Founded in 1988, Olympus Partners manages over $3.1 billion. The firm focuses on growth investments with strong management teams and dominant market positions that demonstrate an ability to create long-term value. Olympus Partners focuses on companies in the business services, transportation and logistics services, healthcare manufacturing and services, financial services, consumer and restaurant and software and IT services sectors. For additional information on Olympus Partners, please visit www.olympuspartners.com.