Huddle House Partners with Allied Capital in $124.1 Million Acquisition
ATLANTA – Huddle House, the nation's 5th largest full-service restaurant franchisor ranked by number of franchised units, announced today that Allied Capital has committed $124 million to complete the acquisition of Huddle House, Inc., offering a solid financial partner to better position the chain for future growth.
Huddle House, known for serving any hearty, home-cooked meal, all day for more than 40 years, operates more than 420 restaurants in 17 states. Most recently, the company has successfully expanded outside of its southeast core into the Mid-Atlantic and Midwest regions, opening 123 new stores in the last four years in various states including Virginia, West Virginia, Ohio, Illinois, Missouri and Texas. System-wide sales last year were $215 million.
"Huddle House has established a loyal following and incredible brand stability throughout small-town America with our hearty, value-priced meals served any time," said Phil Greifeld, President & CEO of Huddle House. "We look forward to continuing this course with Allied Capital as our financial partner. The Allied team adds precisely the kind of long-term investment strategy that will fuel our nationwide expansion, as well as build on the success of our existing franchisees."
Founded in 1964, Huddle House was built upon the concept and desire to provide families in Decatur, Georgia a place to "huddle" around with friends after Friday night high school football games. Huddle House restaurants feature moderately priced meals, served during all day parts with full table service. Best known for its breakfast fare, Huddle House also offers a wide variety of lunch and dinner items seven days a week.
"Allied Capital's investment in Huddle House is reflective of the company's strong and stable franchise base, attractive free cash flow characteristics and proven management team," said Mike Grisius, Managing Director of Allied Capital. Frank Izzo, Principal of Allied Capital, added "we look forward to partnering with the management of Huddle House as they position the company for its next phase of growth."
About Huddle House
Huddle House, Inc., founded in 1964, offers a wide variety of cooked to order food, fresh off the grill for breakfast, lunch and dinner. Known for serving any meal, all day, Huddle House features signature "Big House" breakfast and sandwich platters, lunchtime salads and USDA Choice steak dinners. The Atlanta-based 420-unit nationwide family restaurant franchise located in 17 states throughout the Southeast, Missouri and mid-Atlantic regions had annual system wide sales of $215 million in 2005. For more information, call 1-800-418-9555 or visit the Web site at HuddleHouse.com.
About Allied Capital
Allied Capital Corporation, a leading business development company with total assets of more than $4 billion, has paid regular, quarterly cash dividends to shareholders since 1963. Allied Capital invests in the American entrepreneurial economy by providing capital to companies seeking a long-term financial partner and access to managerial resources often unavailable to smaller companies. Since its IPO in 1960, Allied Capital has provided long-term debt and equity financing to thousands of middle market companies. In serving its shareholders, Allied Capital helps build middle market businesses and support American jobs. The Company's private finance portfolio includes investments in over 100 companies that generate aggregate revenues of more than $12 billion and employ more than 85,000 people. For more information, please visit www.alliedcapital.com, call Allied Capital investor relations toll-free at (888) 818-5298, or e-mail us at firstname.lastname@example.org. All media inquiries should be directed to Gay Truscott at 202-721-6100.
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