Roark Capital Group
Encyclopedia
Roark Capital Group is a private equity
firm focused on leveraged buyout
investments in middle-market companies primarily in consumer and business services companies. Roark has historically focused on the franchise, food and restaurant, specialty retail, environmental services, waste management, and marketing services sectors. The firm is named for Howard Roark, the fictional protagonist in Ayn Rand
's novel, The Fountainhead
.
, was founded in 2001 by the current Managing Partner, Neal Aronson. Prior to founding Roark Capital Group, Aronson was a co-founder of U.S. Franchise Systems (USFS), which was headed by Aronson's father-in-law, Mike Leven, and established to buy Microtel Hotels, then headquartered in Rochester, NY. USFS shortly thereafter also bought the franchising rights to Hawthorne Suites and later added the economy conversion brand, Best Inns (which later became America's Best Inns after USFS was bought out by Hyatt in 2000). Roark has raised approximately $1.5 billion since inception across two institutional private equity funds. The firm raised its first institutional fund in 2005 with $413 million. The firm's second fund was closed in 2008 with $1 billion of investor commitments. Prior to its first fund, Roark raised capital on an as-needed basis, investing approximately $150m in seven companies from 2001 through 2005.
On June 13, 2011, it announced its biggest deal to date acquiring 81.5% of Arby's for $431 million.
and have 45,000 points of distribution in all 50 U.S. states and 43 countries around the world.
Roark's portfolio companies include:
Private equity
Private equity, in finance, is an asset class consisting of equity securities in operating companies that are not publicly traded on a stock exchange....
firm focused on leveraged buyout
Leveraged buyout
A leveraged buyout occurs when an investor, typically financial sponsor, acquires a controlling interest in a company's equity and where a significant percentage of the purchase price is financed through leverage...
investments in middle-market companies primarily in consumer and business services companies. Roark has historically focused on the franchise, food and restaurant, specialty retail, environmental services, waste management, and marketing services sectors. The firm is named for Howard Roark, the fictional protagonist in Ayn Rand
Ayn Rand
Ayn Rand was a Russian-American novelist, philosopher, playwright, and screenwriter. She is known for her two best-selling novels The Fountainhead and Atlas Shrugged and for developing a philosophical system she called Objectivism....
's novel, The Fountainhead
The Fountainhead
The Fountainhead is a 1943 novel by Ayn Rand. It was Rand's first major literary success and brought her fame and financial success. More than 6.5 million copies of the book have been sold worldwide....
.
History
The firm, which is based in Atlanta, GeorgiaAtlanta, Georgia
Atlanta is the capital and most populous city in the U.S. state of Georgia. According to the 2010 census, Atlanta's population is 420,003. Atlanta is the cultural and economic center of the Atlanta metropolitan area, which is home to 5,268,860 people and is the ninth largest metropolitan area in...
, was founded in 2001 by the current Managing Partner, Neal Aronson. Prior to founding Roark Capital Group, Aronson was a co-founder of U.S. Franchise Systems (USFS), which was headed by Aronson's father-in-law, Mike Leven, and established to buy Microtel Hotels, then headquartered in Rochester, NY. USFS shortly thereafter also bought the franchising rights to Hawthorne Suites and later added the economy conversion brand, Best Inns (which later became America's Best Inns after USFS was bought out by Hyatt in 2000). Roark has raised approximately $1.5 billion since inception across two institutional private equity funds. The firm raised its first institutional fund in 2005 with $413 million. The firm's second fund was closed in 2008 with $1 billion of investor commitments. Prior to its first fund, Roark raised capital on an as-needed basis, investing approximately $150m in seven companies from 2001 through 2005.
On June 13, 2011, it announced its biggest deal to date acquiring 81.5% of Arby's for $431 million.
Investments
Roark has acquired 25 businesses from the entrepreneurs who founded them and has invested in 19 franchise brands that together have generated more than $4.5 billion in system salesSystem sales
System sales is a business term used in the franchising industry. Franchisors provide supplies, marketing and administration services to franchisees in return for a part of the franchisees' revenues. Some franchisors also operate some outlets directly. System sales represents the total sales of all...
and have 45,000 points of distribution in all 50 U.S. states and 43 countries around the world.
Roark's portfolio companies include:
- Arby'sArby'sArby's is a fast food restaurant chain in the United States and Canada. Roark Capital Group owns 81.5% of the company, with Wendy's Company owning the other 18.5%. It is primarily known for selling roast beef sandwiches and curly fries. The Arby's menu also includes chicken sandwiches, appetizers,...
- Atkins NutritionalsAtkins NutritionalsAtkins Nutritionals, Inc. produces low-carbohydrate packaged foods. It is owned by Roark Capital Group.-History:The company was started in 1989 by Dr. Robert Atkins, the founder of the Atkins Diet. Following the death of its founder, a sale to Parthenon Capital and Goldman Sachs, and a reduction in...
- Batteries Plus
- FASTSIGNSFastsignsFastsigns is the franchisor of Fastsigns centers which provide a full range of custom sign and graphics products to companies and individuals who want to outsource their signage needs....
- Focus BrandsFOCUS BrandsFocus Brands is an affiliate of the Atlanta-based private equity firm, Roark Capital Group, that owns the Schlotzsky's, Carvel, Cinnabon, and Moe's Southwest Grill brands. It purchased Cinnabon from AFC Enterprises in 2004 and Schlotzsky's from Bobby Cox Companies in 2006...
- Auntie Anne'sAuntie Anne'sAuntie Anne's, based in Lancaster, Pennsylvania, is an American chain of pretzel bakeries founded by Anne F. Beiler and her husband, Jonas, in 1988. Auntie Anne's serves products such as pretzels, dips, and beverages...
. - CarvelCarvelCarvel is an ice cream franchise owned by Focus Brands. Carvel is best known for their soft serve ice cream and ice cream cakes, which feature a layer of distinctive 'crunchies'. It also sells a variety of novelty ice cream bars and ice cream sandwiches....
- CinnabonCinnabonCinnabon is a chain of American baked goods stores and kiosks, normally found in high-traffic areas such as malls. The company's signature item is a grande cinnamon roll. As of July 2009, over 750 Cinnabon bakeries are in operation in over 30 countries around the world...
- Moe's Southwest GrillMoe's Southwest GrillMoe's Southwest Grill is an American chain of fast casual style Tex-Mex restaurants headquartered in Atlanta, Georgia.Moe's was founded in Atlanta, Georgia, in December 2000, by Raving Brands. In August 2007, the brand was purchased by FOCUS Brands...
- Schlotzsky'sSchlotzsky'sSchlotzsky's is a privately held franchise chain of restaurants, specializing in sandwiches, headquartered in Downtown Austin, Texas. Schlotzsky's has more than 350 franchised and company-owned locations worldwide...
- Auntie Anne's
- Il FornaioIl FornaioIl Fornaio is a chain of twenty-two Italian-themed fine dining restaurants operating primarily in California in the United States. Il Fornaio also operates 2 bakeries in California.-History:...
- Corner Bakery CafeCorner Bakery CafeCorner Bakery Cafe is a U.S. chain of cafes that specialize in pastries, breads, breakfast dishes, gourmet sandwiches, and salads. Corner Bakery Cafe is considered to be a part of the fast casual market segment of the food service industry, offering a somewhat higher quality of food and atmosphere...
- Corner Bakery Cafe
- McAlister's DeliMcAlister's DeliMcAlister's Deli is a chain of fast casual restaurants founded in 1989 in Oxford, Mississippi by retired dentist Dr. Don Newcomb. There are currently over 300 locations in 23 states, ranging from Virginia in the East to Florida in the South to New Mexico in West to Indiana in the Midwest...
- Waste Pro
- Wingstop
- PetValu and Bosley's Petstores
External links
- Roark Capital Group (company website)