SOURCE: Seacoast Capital

Seacoast Capital

September 04, 2013 09:00 ET

Seacoast Capital Announces Successful Recapitalization of QK Inc.

SAN FRANCISCO, CA--(Marketwired - Sep 4, 2013) - Seacoast Capital ("Seacoast") announced today that it has successfully partnered with QK management, Cave Creek Capital Management LLC and Stewart Capital Management LLC to recapitalize QK Inc. QK is the largest Denny's franchisee in the world and is now capitalized to pursue an aggressive acquisition and new build strategy that will strengthen the company's leadership position in the family dining category. Doug Koch, CEO of QK noted, "QK has grown to 79 Denny's restaurants and 6 Del Taco locations across the Western United States, and now employs 2,500 people across six states. To continue to grow, we needed to find financial partners who understood our vision and would work with us to achieve it. Seacoast, Cave Creek and Stewart get it, and our entire team is thrilled to have them as partners."

Jeff Holland, Partner at Seacoast Capital, stated, "Doug and his team have built an outstanding company over the past 23 years and we are looking forward to helping QK grow and expand." Kevin Fechtmeyer, Managing Partner of Cave Creek Capital Management LLC, added "QK is in a unique position to take advantage of tremendous opportunities in the family dining industry as it fills out and expands its footprint, and we're very excited to work with them to execute this strategy."

About QK Inc.

QK Inc. (https://www.myqkinc.com/) was founded in 1990 by Robbie Qualls and Doug Koch. When they founded QK, Doug and Robbie had a combined 35 years of Denny's experience ranging from service assistants up to multi-unit supervisors overseeing both company and franchise restaurant operations. QK Inc. operates 79 Denny's restaurants in six states (Arizona, New Mexico, Texas, Colorado, Utah and Oregon) and is the largest franchisee of Denny's restaurants in the world. In November of 2000, QK diversified and purchased its first Del Taco restaurant in Albuquerque, New Mexico. Today, they operate six Del Taco restaurants in New Mexico.

About Seacoast Capital

Seacoast Capital (http://www.seacoastcapital.com/) was founded in 1994 to make non-controlling subordinated debt and equity investments in privately-held lower middle market companies. Seacoast specializes in "sponsorless" transactions, preferring to invest directly with company owners or management teams, although it will selectively consider investments led by professional investor groups. Seacoast typically provides between $3 million and $12 million of debt and equity capital for acquisitions, growth, shareholder buyouts, management buyouts, and leveraged recapitalizations. While industry agnostic, Seacoast broadly invests in the specialty manufacturing, value-added distribution, and business services sectors. Seacoast generally targets investments in companies with $10 million to $150 million in revenue and $2 million or more of EBITDA. With offices in Boston and San Francisco, Seacoast has invested over $260 million in over 20 states since 1994. Seacoast is currently investing its third fund, Seacoast Capital Partners III, L.P.

About Cave Creek Capital Management LLC

Cave Creek Capital Management LLC is a private equity firm specializing in acquisitions, recapitalizations and growth equity investments in the middle market. The firm seeks to invest in companies in transition, either due to rapid growth, shifting economic and competitive environments, owners' estate planning considerations, management buy-ins and/or lending constraints. The firm typically invests in North American companies valued between $10 million and $75 million. CCCM was founded in 2004 and is based in Scottsdale, Arizona.

About Stewart Capital Management, LLC

Stewart Capital Management, LLC is a private equity firm specializing in shareholder liquidity and recapitalizations, acquisition and growth financing in middle market companies. The firm primarily invests in manufacturing, direct marketing, restaurant and retail companies. Stewart Capital Management is based in Stilwell, Kansas.

For more information, or to submit an investment opportunity to Seacoast, please contact Jamie Donelan, Vice President, by phone in Boston at (978) 750-1300, or via e-mail at jdonelan@seacoastcapital.com, or Patrick Gengoux, Associate, by phone in San Francisco at (415) 956-1400 or via e-mail at pgengoux@seacoastcapital.com.

Contact Information

  • Contact:
    Patrick Gengoux
    Associate
    Tel: (415) 956-1400
    E-Mail: Email Contact