Centerplate, a hospitality partner to sports stadiums, convention centers and entertainment venues, announced a management-led buyout of the company from former majority owner Kohlberg and Company with the transaction slated for Q4/12. The buyout, spearheaded by Centerplate’s president and CEO Des Hague, will be completed in partnership with Stamford, CT-based Olympus Partners.
Separately, S&P issued a news release about the deal that said Olympus Partners will acquire Centerplate, funding the estimated $551 million transaction with new debt issuance, including a proposed $342 million senior secured credit facility and $115 million in mezzanine debt.
Centerplate, named the fastest growing hospitality group in the country by Nation’s Restaurant News in 2011, will now see an infusion of resources that will accelerate Centerplate’s growth and innovation strategy.
The management-led buyout will see Centerplate’s senior management team remaining intact, providing stability as well as the continuation of Centerplate’s highly successful growth strategy. Under the leadership of Hague, Centerplate has realized significant revenue growth, with major new business wins including the University of Notre Dame, the New Orleans Convention Center and the new San Francisco 49ers stadium.
“This is a landmark day for Centerplate. Our recapitalization and new ownership structure will create a powerhouse company with the leadership, resources and strategy to grow, innovate and dominate the event hospitality industry,” said Hague. “We are entering this partnership with the knowledge that our business strategy is working, and we are, more than ever, perfectly positioned to serve our current clients, and compete for new ones.”