Company plans to expand geographic footprint and invest in new
technology
TUCSON, Ariz.--(BUSINESS WIRE)--#39north--39 North Capital (“39 North”) has partnered with QSR veteran C. Ron
Petty to purchase eegee’s LLC (“eegee’s” or the “Company”). The
transaction is representative of 39 North’s focus on family and
founder-owned businesses, and will continue the family-owned tradition
on which eegee’s was built.
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Founded in 1971, eegee’s is a staple in the Tucson community, serving
the area through 24 locations and local concessions. The Company prides
itself on its longstanding history of providing a fresh, high-quality
food offering at an affordable price to the local community. eegee’s
enjoys “cult-like” status due to its unique combination of fresh
sandwiches, salads, french fries, homemade ranch dressing, and its
signature frozen fruit drink, the eegee’s.
“eegee’s has established itself as a restaurant leader in the Tucson
community and has built a loyal customer base of true brand
enthusiasts,” said Jacob Roffman, Co-Founder and Managing Partner of 39
North. “We are thrilled to partner with Ron and the broader eegee’s team
to provide operational and financial resources to support the continued
growth of an already iconic brand.”
C. Ron Petty, eegee’s CEO, commented, “the partnership with 39 North
Capital is extremely exciting for eegee’s and our loyal employees. 39
North’s investment will enable us to supercharge our growth, expand our
footprint, remodel the restaurant exteriors and invest in new
technology. Just as important, 39 North will continue the
family-owned-and-operated tradition on which eegee’s was founded.”
Kitchen Fund, a premier investor in emerging restaurant brands,
partnered with 39 North on the transaction. “We look at restaurant
brands across the country and rarely have we seen a brand that has built
such an authentic and longstanding relationship with its guests,” noted
Greg Golkin, Managing Partner of Kitchen Fund. “We have known the 39
North team for a while and have long admired their patient investment
approach. We are thrilled to work on this opportunity with them.”
39 North’s acquisition of eegee’s closed on October 5th. ORIX
Mezzanine and Private Equity and Knott Partners, L.P. also participated
in the purchase. CoBiz Structured Finance, part of BOK Financial,
provided financing for the transaction. McDermott, Will & Emery LLP
provided legal advice to 39 North. DelMorgan & Co. served as financial
advisor to the Company and its selling shareholders, while Snell &
Wilmer provided legal services.
The transaction is 39 North’s second platform transaction and eleventh
acquisition overall since its formation in late 2016.
About 39 North Capital
39 North invests capital on behalf of Eastbridge Group, a family office
with $1.5Bn of assets under management. 39 North focuses on established
family and founder-owned companies where additional capital and
operating resources can accelerate growth, targeting the multi-unit
retail and business services sectors. Unlike a private equity fund, 39
North has flexible, long-term capital and does not employ aggressive
leverage. The firm strives to create lasting relationships with existing
management and prioritizes an alignment of interests. Most importantly,
39 North prefers to do business with people that can be long-term
partners and that share similar values. For more information, please
visit www.39northcapital.com.
About eegee’s
Headquartered in Tucson, Arizona, eegee’s is a quick service restaurant
chain operating 24 locations in and around the Tucson area. The Company
has a wide variety of product offerings including sandwiches, french
fries, salads, homemade ranch dressing, cookies, and the iconic eegee’s
frozen fruit drink. All but one location contains both in-store and
drive-through components. The Company also offers a rotating menu of
limited time offer items that have helped make it one of the strongest
and most recognizable brands in southern Arizona. For more information,
visit www.eegees.com.
Contacts
39 North Capital
Jake Roffman
646-784-0661