Krystal, the makers of the popular little burger, has been sold.TIMELINE1932 – The first Krystal opens on the corner of Cherry and Seventh streets in Chattanooga1941 – The company has 33 restaurants in Tennessee, Georgia and Alabama1950s – Company adds drive-through window1965 – Krystal opens 100th restaurant1978 – Krystal reaches more than 5,700 employees1982 – Present logo is launched1992 – Krystal announces initial stock offering and the company becomes publicly traded on the Nasdaq Exchange.1997 – Company acquired by Port Royal Holdings in $145 million deal2003 – Fred Exum takes over as CEO2007 – Krystal aborts sale2011 – Company announces it is back on the auction block2012 – Argonne Capital Group buys Krystal in $175 million dealSource: The Krystal Co., news reportsFAST FACTSThe Krystal Co.• Headquarters: Chattanooga, home to 700 corporate employees• Founded: Oct. 24, 1932• CEO: Fred Exum• Former owners: Summerfield K. Johnston, Probasco and Patten family members in Chattanooga and the Ingram family in Nashville.• New owners: Argonne Capital Group• Number of restaurants: 360 in 11 states• Employees: More than 6,500Source: The Krystal Co.Argonne Capital Group• Headquarters: Atlanta, Ga.• Founded: 2003• Key people: Michael Klump, founder and president, and Karl Jaeger, managing director• Key investments: Excluding Krystal, the company owns more than 350 franchises and employs 10,000 workers at IHOP, Applebee’s and Stevi B’s Pizza locations nationwide.Source: Argonne Capital Group
Fred Exum feels like the weight has been lifted from his shoulders.
“I’m just glad the process is over,” the CEO of The Krystal Co. said Thursday afternoon, following a meeting with his top managers to announce the sale of the Chattanooga-based restaurant chain.
The 55-year-old chief executive and Krystal investor said he got what he wanted out of the estimated $175 million deal with Atlanta-based Argonne Capital Group.
The headquarters of the nation’s second-oldest hamburger company will remain in Chattanooga, and the company’s mostly local investors – who have held out on selling since 1997 – made their money back. In fact, the former owners insisted on maintaining Krystal’s Chattanooga base as a condition of any sale.