US-based Bessemer Investment Partners (BIP), through its new portfolio company MAS Restaurant Group (MRG), has purchased the assets of Taco Bell franchisee KorMex Foods.
As part of the deal, MRG now operates 73 Taco Bell restaurants, two co-branded KFC and six co-branded Pizza Hut Express locations in Houston and surrounding markets.
Under the terms of the agreement, BIP provided liquidity to KorMex’s founders and selling shareholders.
The investment will allow MRG to support future growth through new store development and acquisitions. Financial terms of the deal were not disclosed.
BIP principal Andrew Mendelsohn said: “We see MRG as a platform with tremendous potential for expansion within the Taco Bell system, through both new store development and acquisitions.
“We look forward to partnering with Chad, Ben and the management team as they continue to operate high-quality restaurants and grow location count in Houston and beyond.”
KorMex former chief operating officer Chad Motsinger will now serve as the CEO of MRG, and California Pizza Kitchen FP&A vice-president Ben Walsh will act as the chief financial officer of MRG.
Motsinger and Walsh will join other KorMex executives to lead MRG going forward. Both will also retain a minority stake in the company.
Motsinger said: “Over the past 18 years, we have built a successful company serving both our customers and our employees in the Houston community.
“Our partnership with BIP will allow us to continue that success as well as create a platform for new growth opportunities.”
Real estate investment company Trinity Capital acted as the exclusive financial advisor to KorMex Foods for the transaction assisting the company through an auction process.