New York hedge fund Fairhills Capital has entered into a contract with Corporate Acquisitions Group to identify, contract, and manage the process of acquiring up to $1 billion in private companies in the food service industry sector.
The final sale price includes approximately 80% in cash, as well as 20% future stock in the new entity. Current ownership is also being offered the opportunity to continue to run their respective companies in a salaried position.
The contract was established on February 2, 2007 between both parties. During the following 30 days, 13 companies in 6 states were brought into the project with a total value of $145 million, $15 million in EBIDTA, $14.7 million in real estate, and $54 million in other assets.
On April 13, 2007 the hedge fund began closing on the first business purchase within the project.
As of May 31, 2007, 33 companies were involved with a total project value of $432 million. Over $79 million had already closed and the project was anticipated to be completed and closed by the end of August 2007.
The 33 companies currently in the project represent sole proprietors, C Corporations, S Corporations, and LLC organizations in 22 states including Hawaii.
Corporate Acquisition Group has worked with hundreds of similar business purchases, and continues to offer such services to hedge funds, high net worth individuals, private equity groups, and business owners.