TUCSON, Ariz.--(BUSINESS WIRE)--39 North Capital (“39 North”) has partnered with QSR veteran C. Ron Petty to purchase eegee’s LLC (“eegee’s” or the “Company”). The transaction is representative of 39 North’s focus on family and founder-owned businesses, and will continue the family-owned tradition on which eegee’s was built.
Founded in 1971, eegee’s is a staple in the Tucson community, serving the area through 24 locations and local concessions. The Company prides itself on its longstanding history of providing a fresh, high-quality food offering at an affordable price to the local community. eegee’s enjoys “cult-like” status due to its unique combination of fresh sandwiches, salads, french fries, homemade ranch dressing, and its signature frozen fruit drink, the eegee’s.
“eegee’s has established itself as a restaurant leader in the Tucson community and has built a loyal customer base of true brand enthusiasts,” said Jacob Roffman, Co-Founder and Managing Partner of 39 North. “We are thrilled to partner with Ron and the broader eegee’s team to provide operational and financial resources to support the continued growth of an already iconic brand.”
C. Ron Petty, eegee’s CEO, commented, “the partnership with 39 North Capital is extremely exciting for eegee’s and our loyal employees. 39 North’s investment will enable us to supercharge our growth, expand our footprint, remodel the restaurant exteriors and invest in new technology. Just as important, 39 North will continue the family-owned-and-operated tradition on which eegee’s was founded.”
Kitchen Fund, a premier investor in emerging restaurant brands, partnered with 39 North on the transaction. “We look at restaurant brands across the country and rarely have we seen a brand that has built such an authentic and longstanding relationship with its guests,” noted Greg Golkin, Managing Partner of Kitchen Fund. “We have known the 39 North team for a while and have long admired their patient investment approach. We are thrilled to work on this opportunity with them.”
39 North’s acquisition of eegee’s closed on October 5th. ORIX Mezzanine and Private Equity and Knott Partners, L.P. also participated in the purchase. CoBiz Structured Finance, part of BOK Financial, provided financing for the transaction. McDermott, Will & Emery LLP provided legal advice to 39 North. DelMorgan & Co. served as financial advisor to the Company and its selling shareholders, while Snell & Wilmer provided legal services.
The transaction is 39 North’s second platform transaction and eleventh acquisition overall since its formation in late 2016.
About 39 North Capital
39 North invests capital on behalf of Eastbridge Group, a family office with $1.5Bn of assets under management. 39 North focuses on established family and founder-owned companies where additional capital and operating resources can accelerate growth, targeting the multi-unit retail and business services sectors. Unlike a private equity fund, 39 North has flexible, long-term capital and does not employ aggressive leverage. The firm strives to create lasting relationships with existing management and prioritizes an alignment of interests. Most importantly, 39 North prefers to do business with people that can be long-term partners and that share similar values. For more information, please visit www.39northcapital.com.
Headquartered in Tucson, Arizona, eegee’s is a quick service restaurant chain operating 24 locations in and around the Tucson area. The Company has a wide variety of product offerings including sandwiches, french fries, salads, homemade ranch dressing, cookies, and the iconic eegee’s frozen fruit drink. All but one location contains both in-store and drive-through components. The Company also offers a rotating menu of limited time offer items that have helped make it one of the strongest and most recognizable brands in southern Arizona. For more information, visit www.eegees.com.