City Capital Ventures Acquires Toronto-Based Burger King and Pizza Hut Franchisee Redberry Group

City Capital Ventures, LLC (“CCV”), a private investment partnership
headquartered in Chicago, Illinois, is pleased to announce its
acquisition of Toronto-based Redberry Group (“Redberry” or the
“Company”). Redberry is one of the largest quick-service restaurant
franchisees in North America with 134 total restaurants consisting of
111 Burger King restaurants and 23 Pizza Hut restaurants, all located in
Canada. Redberry is the largest Burger King franchisee in Canada with
roughly 40% of the brand’s footprint in Canada. Financial terms of the
transaction were not disclosed.

The sale of Redberry is supported by its two franchisor partners, Burger
King and Pizza Hut, who both desire a franchisee partner capable of
achieving the growth potential they see in Canada. Founded in 1954,
Burger King is the second largest global fast food hamburger chain in
the world with more than 17,500 locations. Since being acquired in 2010
by 3G Capital and becoming the cornerstone to Restaurant Brands
International, Burger King has enjoyed a renaissance in its business,
led by the freshness and innovation of its menu and its market
positioning. Pizza Hut was founded in 1958 and has become the world’s
leading pizza chain with over 16,800 units worldwide.

Dan Kipp, Co-Founder and Managing Partner of CCV, commented, “We are
thrilled to be acquiring two iconic restaurant brands in the highly
attractive Canadian QSR market. The Burger King brand is underpenetrated
in Canada relative to other QSR burger brands, and we see a compelling
opportunity for expansion. Similarly, Redberry has a strong Pizza Hut
presence in Alberta with a base of nicely profitable units. The
opportunity to continue to develop new units in the market is quite
attractive to us.” Mr. Kipp will be joining Redberry’s Board of
Directors pursuant to the transaction.

CCV has engaged Spencer Stuart to assist in conducting a search for a
new CEO for Redberry. The leadership team at Redberry will continue with
the Company. CCV is also partnering with Gary Graves, a deeply
experienced retail and restaurant executive and former Chairman of
Caribou Coffee, who will become Chairman of Redberry. Chicago-based
Saxonwold Capital will be an investment partner of CCV’s in this
transaction, and Rob Selati, President of Saxonwold, will also join the
Redberry Board concurrent with the investment.

“We are highly impressed with the current management team and excited
for them to be our partners in accelerating Redberry’s growth in Canada
and delivering superior operating results,” added incoming Chairman
Graves. “Redberry’s experienced and effective management team, which has
been in place since 2014 and combined brings over 100 years of relevant
QSR industry experience, provides the foundation for our organic growth.”

Senior debt for the transaction was provided by CIBC and Scotiabank.
McCarthy Tétrault LLP served as legal counsel to CCV with additional
services provided by Perkins Coie LLP. Metronome Partners served as
financial advisor to Redberry Group.

About Redberry Group

Founded in 2005, Redberry Group is one of the largest quick-service
restaurant franchisees in North America with 134 restaurants consisting
of 111 Burger King restaurants and 23 Pizza Hut restaurants. The Burger
King locations represent 40% of all Canadian Burger King locations
across Ontario, Quebec and Manitoba. Redberry’s Pizza Hut units are
located in Alberta.

About City Capital Ventures

City Capital Ventures is an investment partnership whose purpose is to
pair capital with business opportunity in a better, more-tailored way.
Investing on behalf of their network of family offices and private
market investors, CCV seeks out firms with innovative business designs
and attractive niche positions and looks to invest at inflection
points—not pre-determined stages. Because of their flexible mandate, CCV
investments are unbound by size or industry, though they typically
invest in consumer, commercial and service businesses requiring up to
$100 million of capital. CCV’s aim is to create lasting value for their
investors, the companies in which they invest, and the broader
stakeholders touched by their companies. For more information, visit www.citycapitalventures.com.

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