GE Capital, Franchise Finance recently co-led the funding of a $36 million debt facility for the acquisition of Wingstop Restaurants Inc. by an affiliate of Atlanta-based private equity firm Roark Capital Group. Funding was provided through GE Capital, Franchise Finance's bank affiliate, GE Capital Financial Inc.
Roark announced in April its purchase of the chicken-wing chain for an undisclosed sum.
"Being the incumbent lender to Wingstop and also having completed multiple deals with Roark, we have a strong relationship with both parties that made this an easy process," said Robert Daniel, senior vice president at GE Capital, Franchise Finance.
Including Wingstop, Roark has now acquired 17 franchise/multiunit brands, including Moe's Southwest Grill, McAlister's Deli and Schlotzsky's, and has completed five acquisitions within the last six months.
Wingstop was founded in 1994 and is headquartered in Richardson, Texas. Wingstop has more than 440 restaurants and also announced in April it reached its 2 billion wing milestone.
"We are excited about the acquisition and anticipate strong growth with the help of Roark's strategic insight," said Jim Flynn, Wingstop's CEO. "With our management team staying in place, our growth plan also includes new opportunities for our current franchisees."
Wingstop Restaurants generated more than $300 million in annual sales in 2009.
