Birmingham, AL (August 22, 2005) — Birmingham Alabama-based Tacala, the largest franchise operator of Taco Bell restaurants in the nation, announced its acquisition of 28 Taco Bell Corp. restaurants in the Birmingham and Huntsville markets and recapitalization for continued growth and development.
The acquisition is part of Tacala's long term growth strategy that includes greater presence in Birmingham and Huntsville, where Tacala had already owned restaurants. "These 28 Taco Bell restaurants fit in perfectly with our company and allow us to operate with greater efficiencies. This growth provides additional career opportunities for members of our company." said Don Ghareeb, President of Tacala. The additional restaurants increase Tacala's locations by +20%. The company now owns 165 locations in six states - Alabama, Georgia, Tennessee, Kentucky, Virginia and North Carolina. Tacala employs a total of 3300 team members in these states. This is the fifth such acquisition for the company, the most recent prior one being 45 units in 1999.
Upon completion of the transaction, Tacala redeemed ownership of the family of Dick Reese, a founding partner. Dick Reese passed away on July 8th after a prolonged illness. "Dick was my partner for 25 years and he was enthusiastic about Tacala's plans for the future. Dick and his family will have a lasting impact on the culture of our company." said Mr. Ghareeb, co-founder of Tacala. The retirement of the Reese family interest provided an opportunity for greater participation by the company's Executive Team who have ownership interest in the company and are now listed as franchisees on Taco Bell Franchise Agreements. The Executive Team is comprised of John Figert, VP of Development, Elizabeth Ghareeb, Executive Vice President, Tom Mathis, VP of Construction, Marjorie Perlman, President of Freedom Advertising, Joey Pierson, CFO, and Tom Wilke, VP of Operations. "Collectively, the Executive Team has 75 years of Taco Bell experience. This team is imminently qualified to lead Tacala into the future and execute our long term growth strategies."
According to Mr. Ghareeb, one of the key components of the long term growth strategy is a multi-year plan to build new Taco Bell restaurants and upgrade existing facilities by utilizing the proceeds from the transaction along with Tacala's capital. " The new 'Bold Choice' building designed by Taco Bell Corp. is the most exciting structure in the QSR industry. We want to maximize development of the new restaurant design to strengthen our brand image in the communities where we do business." said Mr. Ghareeb.
Wells Fargo Commercial Capital was the lead arranger of the $105 million transaction sales leaseback and corporate senior secured credit facility. Wells Fargo & Company is a diversified financial services company with $436 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Commercial Capital provides capital to owners of multi-unit branded retail businesses in the restaurant, convenience store, and auto service industries. For more information on WFCC, contact Brian Roach, managing director, at (760) 918-2700 or at roachbrj@wellsfargo.com.