The private equity firm bought the holdings from PE firm Quilvest Capital Partners
Private equity firm Beach Point Capital Management has invested in Dunkin’ franchisee Metro Franchising, the investor said Wednesday. The firm bought the equity from Quilvest Capital Partners.
Metro Franchising was founded in 1988 and operates 105 Dunkin’ locations in the New York City metropolitan area, making it one of the largest franchisees in Dunkin’s system of more than 13,000 units globally. Metro’s co-founders, chief executive officer Stuart Cohen and president Paul Waltzer, will continue in their roles and remain shareholders of the business.
Beach Point managing director Bordon Lai, who was a principal in Quilvest from 2015 to 2020, said in a statement that he appreciated Dunkin’s reputation and the experience of Cohen and Waltzer.
"Dunkin' is an iconic brand providing great value to millions of loyal customers across North America, and we are very excited to support Metro Franchising's continued growth and expansion,” he said. “Stuart and Paul have built Metro Franchising into one of the top franchisees in the system, and having known and worked with them since 2015, I am thrilled to partner with them again."
Under Quilvest’s sponsorship, which included investments in personnel as well as in finance and information technology, Metro grew from 44 units to its current 105, according to a release from Quilvest, including seven acquisitions and 23 new-unit openings.
Quilvest said it also developed a professional board of directors for Metro by appointing independent members who had strong expertise in quick-service restaurants.
The firm’s managing director Jared Nagae said it was pleased with Metro’s growth.
"We are delighted by Metro's transformation and growth under our sponsorship,” he said. “This investment is a strong example of Quilvest's strategy of identifying high-potential businesses, partnering with exceptional management teams, and driving value through strategic initiatives, such as unit growth through both de novo builds and acquisitions. We are confident that Metro is well positioned for continued growth and are excited to continue to see it prosper.”
Cohen said he was looking forward to continue growth thanks to the Beach Point investment.
"The partnership with Beach Point represents a new chapter for Metro Franchising, and we are confident that with their support, we will be able to accelerate our growth locally and in new markets. Beach Point's deep understanding of our business and the franchising landscape is exactly what we need to further our expansion goals," he said
Waltzer said Metro intended to expand beyond the Northeast.
"Beach Point's expertise and resources will be invaluable as we expand our footprint in the New York metro region and new territories in the Southeast," he said.
Beach Point has around $17 billion in assets under management. It’s headquartered in Santa Monica, Calif., and has offices in New York City, London, and Dublin.
Contact Bret Thorn at [email protected]
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