Smashburger Closes on $35 Million Funding Round with Golub Capital
Line of Credit to Support Fast Casual Brand’s Global Expansion Plans
DENVER - June 25, 2013 - (BUSINESS WIRE) - Smashburger, the rapidly expanding better burger restaurant concept, today announced that it has closed on a $35 million round of financing with Golub Capital. The company intends to use the line of credit to finance its ongoing growth plans, which include anticipated 30% new unit growth for 2013. Smashburger expects to open 50 to 60 company and franchise locations this year, ending the year at close to 250 locations and 300+ units by the end of 2014.
“At just over 200 locations today, we see significant runway for growth across the United States and internationally,” commented Dave Prokupek, chairman and chief executive officer for Smashburger. “We are very pleased to partner with Golub Capital to access additional financing that will assist us in executing on our growth plans going forward. The team at Golub shares our belief in the growth opportunity for Smashburger and we look forward to continuing the process of establishing Smashburger as the leading better burger concept globally.”
Smashburger was launched in 2007 with an initial investment from concept development firm Consumer Capital Partners, which has continued to invest in the company over the years. In addition to the planned openings for this year, the company has agreements for over 250 franchise locations in the pipeline that are expected to open over the next several years, across the U.S. and internationally. The company continues to seek qualified franchise partners to expand the brand into target markets, including Canada, the United Kingdom and Australia.
“We have known the Smashburger team for several years and believe the company is well positioned to become the industry leader in the better burger category and in the fast casual sector overall,” commented Charles Riceman, managing director at Golub Capital. “We were impressed with Smashburger’s industry leading franchisees, as well as the company’s execution on its business goals to date and we look forward to being a part of the company’s success going forward.”
Smashburger is America’s fastest growing, fast casual “better burger” restaurant with more than 210 corporate and franchise restaurants operating in 29 states and in four international countries. The company began in 2007 with the vision of Rick Schaden and funding by Consumer Capital Partners—the private equity firm that he and his father Richard own. By offering fresh, premium “smashed to order” burgers, chicken sandwiches, salads, signature side items and hand-spun Häagen-Dazs shakes, Smashburger has modernized the way people think about burgers. Known for localizing its menu in every market with regionally inspired burgers, side items and local craft beers, Smashburger has received numerous awards, including topping Fast Casual’s 2012 Top Mover & Shakers list, America’s Most Promising Company by Forbes magazine, INC. 500’s List of America’s Fastest Growing Companies and INC’s #9 Hire Power Award winner, as well as regularly receiving “best burger” awards in cities around the world. To learn more, visit www.smashburger.com.
About Consumer Capital Partners
Consumer Capital Partners is an innovative investment and operating company, focused on starting up, operating and investing in consumer, franchising and lifestyle brands. Consumer Capital Partners also engages in modern channels of giving across a broad spectrum of contemporary causes. To learn more about CCP, please visit www.consumercp.com.
About Golub Capital
With over $8 billion of capital under management, Golub Capital is a leading provider of financing solutions for the middle market, including one-loan financings (through the firm's proprietary MiniGOLD, GOLD, and MegaGOLD facilities), senior, second lien, and subordinated debt, preferred stock and co-investment equity. The firm underwrites and syndicates senior credit facilities up to $300 million. Golub Capital's hold sizes range up to $250 million per transaction.
Golub Capital has been a top 3 Traditional Middle Market Bookrunner each year from 2008 through 1Q 2013 for senior secured loans of up to $100 million for leveraged buyouts (according to Thomson Reuters LPC and internal data; based on number of deals). In 2012, Golub Capital was awarded the ACG New York Champion's Award for "Senior Lender Firm of the Year" and "Lender Firm of the Year" by M&A Advisor. Golub Capital is a national firm with principal offices in Chicago and New York. For more information, please visit the firm's website at www.golubcapital.com.