Levine Leichtman Capital Partners has completed a dividend recapitalization of strategic brand management business Global Franchise Group, a portfolio company in Levine Leichtman Capital Partners IV, LP. Proceeds will be used to pay a shareholder dividend and for working capital. This is the second time Global Franchise Group has recapitalized its balance sheet.
Levine Leichtman Capital Partners (“LLCP”), a private equity firm headquartered in Los Angeles, California, has announced a completed recapitalization for Global Franchise Group, LLC (“GFG”), a portfolio company of Levine Leichtman Capital Partners IV, L.P.
“We are pleased to have completed this divided recapitalization for GFG, which provided working capital and paid a shareholder dividend,” said Arthur Levine, president of Levine Leichtman Capital Partners.
Mr. Levine added, “This is the second time in the last two years GFG was able to recapitalize its balance sheet, demonstrating the company’s superior financial performance, cash generating ability and strong base of franchise brands.”
Recapitalization by private equity groups such as LLCP is a common practice. Investments by LLCP bring financial and operational experience to business partners, while at the same time, allow the owners of the business to maintain meaningful equity stakes in their companies.
Since 1984, Levine Leichtman Capital Partners has provided entrepreneurs with long-term capital and financial expertise. LLCP makes investments into middle market companies utilizing its structured equity investments approach. Previous investments include Santa Cruz Nutritionals, CiCi’s Pizza, Hackney Ladish, and Luminator Technology Group.
As a strategic brand management company with a focus on franchising, Global Franchise Group, LLC owns a portfolio of franchise brands that includes multiple quick service restaurant (QSR) franchise concepts. The company has a solid reputation for the support it provides to nearly 1,100 franchised and corporate stores in over 16 countries across the globe.
The GFG recapitalization is one of many recent successful transactions that LLCP has handled. The senior credit facility was provided by Ares Capital Corporation, Bank of Montreal and NXT Capital.
For more information, visit the Levine Leichtman Capital Partners website at http://www.llcp.com .
About Levine Leichtman Capital Partners
Levine Leichtman Capital Partners is a Los Angeles, California-based investment firm that manages approximately $7.0 billion of institutional investment capital through private equity partnerships, and various debt and leveraged loan funds. LLCP is currently making new investments through Levine Leichtman Capital Partners V, L.P., Levine Leichtman Capital Partners SBIC Fund, L.P., and Levine Leichtman Capital Partners Private Capital Solutions, L.P.