Argonne Capital Group, LLC today announced the completion of its previously announced acquisition of On The Border Mexican Grill & Cantina from private equity firm Golden Gate Capital. Argonne Capital partnered with an affiliate of Fortress Investment Group, LLC on the transaction.
On The Border was founded in 1982 and today is the largest full-service Tex-Mex restaurant brand in the country. On The Border operates 121 units across the U.S. and also franchises 36 units across the U.S., Puerto Rico, Saudi Arabia and South Korea.
“We are excited to have closed this transaction in such a swift manner and are eager to begin our partnership with the Company’s strong management team,” said Michael Klump, President and Founder of Argonne Capital. “The acquisition of On The Border fits squarely within Argonne’s investment mandate and offers a tremendous opportunity to leverage our track record of delivering operational excellence and executing a best-in-class real estate and development strategy. We look forward to positioning this concept for long-term success.”
“We are thrilled to begin our next chapter of growth with Argonne Capital,” said Steve Clark, CEO of On The Border. “Their extensive experience in the restaurant space will be a tremendous asset as we continue to evolve and build our brand.”
With the completion of this acquisition, Argonne Capital has increased its restaurant portfolio to over 925 locations covering brands such as IHOP, Applebee’s, Krystal, On The Border and Stevi B’s Pizza. Today, Argonne’s portfolio of companies employs over 25,000 people and generates in excess of $1.5 billion in annual system-wide sales.
King & Spalding and McGuireWoods LLP advised Argonne Capital on the transaction. Financing for the transaction was led by GE Capital.