PE-backed restaurant supplier sells HQ

Angelo Gordon’s sale-leaseback group has bought the headquarters and main distribution centre of Stampede Meat, a portfolio company of Fairmont Capital, PNC Mezzanine Capital and Sankaty Advisors. The all-equity deal was valued at $14m.

Fairmont Capital, PNC Mezzanine Capital and Sankaty Advisors have sold the headquarters and main distribution facility of their portfolio company, Stampede Meat, to Angelo Gordon in a $14 million sale-leaseback transaction.

The private equity and investment firms acquired Stampede, which supplies beef products to the US restaurant industry, in January 2007.

Angelo Gordon’s sale-leaseback arm, the Net Lease Group, said today it bought Stampede’s Bridgeview, Illnois headquarters and processing plant, which it described as one of the “largest steak cutting facilities in Chicago”, in an all-equity deal.

Gordon Whiting, Angelo Gordon Net Lease founder and chief portfolio manager, said in a statement: “We provided a firm financing commitment to Stampede in two weeks and closed all-cash shortly thereafter on the terms originally proposed. We expect to be very active in 2009 in similar recapitalisations with quality companies such as Stampede.”

Fairmont is a private equity firm based in Brea, California targeting mid-market consumer industries. PNC Mezzanine Capital led the $42 million junior capital financing of Stampede in 2007, providing $14 million of subordinated debt and an equity co-investment of $7 million, according to the firm’s website. Sankaty Advisors is the credit arm of private equity firm, Bain Capital.