Pacific Bells LLC, one of the largest Taco Bell franchise operators, has been acquired by investment firm Orangewood Partners, the company said Thursday.
Terms were not disclosed. The Vancouver, Wash.-based franchise group was previously owned by Partners Group, a global private markets firm that invested in 2015 and supported the franchisee through a period of rapid expansion through acquisitions and organic growth.
Under the deal, Pacific Bells’ founder and CEO Tom Cook and others on the management team will retain a significant minority stake in the company and will continue to operate the restaurants.
Alan Goldfarb, founder and managing partner of Orangewood, said in a statement, “Orangewood’s philosophy is to partner with founders and industry leading management teams.”
The New York-based firm has another Taco Bell franchise in its portfolio: ABTB in the Louisville, Ky., with a similar management partnership. That company will be operated separately, officials said.
With more than 250 Taco Bell locations, Pacific Bells was founded in 1986 in Oregon, and has since grown to include units in nine states, including Alabama, Arkansas, California, Mississippi, Ohio, Oregon, Tennessee, Washington and Wisconsin.
Under the new ownership, the group plans to continue its growth through both acquisition and new unit openings in current and additional markets, the company said.
“Over the last 35 years, we’ve assembled a highly capable and dedicated team that strives to deliver an exceptional guest experience day in and day out,’ said Cook in a statement. “Our new partnership with Orangewood, an experienced, long-term investor with a focus on the QSR sector, will help continue the expansion of our Taco Bell portfolio and create more growth opportunities for our talented and dedicated employees. We look forward to this partnership and continuing to be a best-in-class operator delivering a world-class customer experience.”
The transaction is subject to certain approvals and is expected to close in the fourth quarter.
Paul Hastings LLP, Kirkland & Ellis LLP and PricewaterhouseCoopers advised Orangewood. Ropes & Gray LLP, Trinity Capital and North Point Advisors represented Pacific Bells.
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