Aurora Capital Partners has agreed to sell Restaurant Technologies Inc., a company that distributes cooking oil and collects used oil from U.S. restaurants, to West Street Infrastructure Partners III, an investment fund managed by Goldman Sachs.
Terms were not disclosed.
Los Angeles-based Aurora acquired Restaurant Technologies from another private equity firm, EQT Infrastructure Ltd., in 2015.
The company, based in Mendota Heights, Minn., provides fresh oil delivery, used oil removal, hood and exhaust cleaning and data management services for fast-food and full-service restaurant chains, grocery delis, hotels, casinos, convenience stores, universities and hospitals across the country. The used oil is sold to producers of biofuel to be used as a feedstock for biodiesel.
Restaurant Technologies operates a delivery fleet of approximately 350 trucks.
In a statement, Edward Pallesen, head of the Infrastructure Investment Group within the merchant banking division of Goldman Sachs, explained the rationale for the acquisition.
“We believe RT is an attractive infrastructure investment with an extensive installed asset base across 41 terminals and more than 25,000 customer locations, a diversified customer base and strong recurring cash flow underpinned by long-term contracts,” he said. “We are excited to partner with management to support the next phase of the company’s growth.”
Officials at Aurora said the company has experienced robust growth and market expansion in the past few years, but that significant growth potential still exists in current and adjacent markets in the food service industry.
“We wish the company, its management and its new owners continued success,” said Mark Rosenbaum, managing partner at Aurora.
Restaurant Technologies President Jeff Kiesel praised Aurora for helping the company achieve important goals.
“Aurora has provided invaluable support and highly relevant resources and expertise that were critical in driving a transformational period of growth,” he said.
Aurora manages more than $3 billion in investment capital. Among its holdings is Hockley, Texas-based VLS Recovery, a company that provides cleaning services for railcars and large industrial containers, plus recycling and treatment of liquid waste products.
VLS recently completed the acquisition of Beauchan Rail Services in Friendswood, Texas, to expand its railcar-cleaning services.