As recently reported by peHUB Canada, Markham, Ontario’s Serruya family, which manages a private equity fund that invests in retail franchises, has bought a majority stake in Kahala Corp., a Scottsdale, Arizona-based fast food restaurant company. The undisclosed deal was confirmed as closed on August 19, 2013. Kahala owns Canadian brand Cold Stone Creamery, an ice cream chain that has a business partnership with Tim Hortons. Private equity firm Delavaco Group was reported as partnering in the Kahala acquisition.
Serruya Family Acquires Controlling Interest in Kahala Corp.
TORONTO–(BUSINESS WIRE)–The Serruya family today announced that they have acquired a controlling interest in Kahala Corp. (“Kahala”), one of North America’s leading franchisors of quick service restaurants. The transaction was completed on Monday, August 19th, 2013.
Kahala is the owner and franchisor of a number of well-known brands, including Cold Stone Creamery; Blimpie; Taco Time; Samurai Sam’s Teriyaki Grill; The Great Steak & Potato Company; NrGize Lifestyle Café; Surf City Squeeze; Johnnie’s New York Pizzeria; Frullati Café & Bakery; Rollerz; Ranch One; and America’s Taco Shop. The company’s brands are available in more than 23 countries with over 3,035 franchised and corporate store locations. Kahala’s total system wide revenues are approximately one billion dollars.
The Serruya family brings substantial experience in franchising to Kahala. They are planning for growth of Kahala brands in both international and North American markets. Commenting on the transaction, Michael Serruya, the new Chairman and Co-CEO of Kahala, stated, “We are extremely pleased to become major shareholders of this outstanding company. We look forward to using the experience and skillsets that we’ve obtained over the last 26 years in this industry, as owners and management of numerous quick service restaurant brands, to work closely with the entire Kahala team to enhance and strengthen the franchise business model.
Commenting on behalf of Kahala, Kevin Blackwell, the Founder and now Co-CEO of Kahala shared that he has known Michael Serruya for over 20 years and holds him to the highest regard not only professionally but personally. “It is without doubt that Michael’s expertise and experience in the franchising world will have a positive impact on Kahala and its future, and I know that Michael will be a tremendous asset to Kahala. The financial strength of the company has been significantly enhanced as a result of this transaction. It positions Kahala as an industry leader and will allow us to grow our portfolio by acquiring or partnering with other world class brands.”
About Kahala Corp.
Scottsdale, Arizona based Kahala Corp. is one of North America’s leading franchisors. It is the owner and franchisor of 13 quick service restaurant brands including; Cold Stone Creamery; Blimpie; Taco Time; Samurai Sam’s Teriyaki Grill; The Great Steak & Potato Company; NrGize Lifestyle Café; Surf City Squeeze; Johnnie’s New York Pizzeria; Frullati Café & Bakery; Rollerz; Ranch One; and America’s Taco Shop.
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