Culver Franchising System is entering into a business agreement with affiliates of Roark Capital Group, an Atlanta-based private equity firm. The agreement involves individual Culver’s shareholders selling a minority of their shares to affiliates of Roark. The Culver family will maintain a majority ownership of the company. Other terms of the agreement are not being disclosed.
“For many years the Culver family has been discussing ownership succession planning with the desire to remain a family-owned business, stay privately held and proceed with thoughtful estate planning,” said company co-founder and board chairman Craig Culver. “The sale of a minority interest in the company allows us to do so. We want to make sure we set up the next generation of the Culver’s family and the entire franchised system for success.”
“We will continue to operate the business similar to how we do today and are excited to have the ability to tap into Roark’s knowledge base to build and enhance future capabilities as we continue to grow and develop future strategic priorities,” says Joseph Koss, president and CEO.
As part of this business agreement, Roark will have representation on Culver’s board of directors. Culver will continue to serve as chairman of the board. Koss and the management team will remain in their current roles. There are no plans to sell additional shares, per a release announcing the deal.