Frisch's Last Two Family Execs Gain Exit Via NRD
Frisch's Big Boy
Frisch’s Restaurants is the first acquisition for NRD Partners, the Atlanta-based private equity fund launched last August by CEO Aziz Hashim.
It’s the first private equity owner in Frisch’s history. NRD is buying all outstanding shares for $34 per share, a 21 percent premium compared to the closing price May 21, or about $175 million total.
“This is the culmination of over two years of strategic planning and this is the right transaction for the company,” said Craig Maier, Frisch’s CEO, in a statement. “Frisch’s has been a family operated business since my grandfather opened our first drive-in in 1939.”
When the transaction closes, expected by the end of September, both Craig Maier and Karen Maier, Craig’s sister and the company’s vice president of marketing, will retire but remain as franchisees of Frisch’s. The two are the last family members involved in running the company.
Craig Maier last October downplayed an investment by hedge fund AOF Management, which bought 5.2 percent of the shares, and said he had never sold a company share, in a Cincinnati Enquirer article.
Frisch’s operates full-service family-style restaurants under the name Frisch’s Big Boy, in Kentucky, Indiana, Ohio and Tennessee.
Hashim, a long-time franchisee of Popeyes and other brands, is selling his stores and pivoting to acquisitions through his new fund. In a cover story last August, he told Franchise Times he will seek to make the franchises he buys more attractive to multi-unit operators like himself. In a statement, he called Frisch’s restaurants “among the most classic and adored family restaurants in the country.”