Five Star Food Service, headquartered in Chattanooga, has been acquired by private equity firm PNC Riverarch Capital.
Founded in 1993, Five Star serves more than 5,500 customers across vending, micro-market, office coffee, and dining operations with sales of more than $100 million.
Five Star operates from 12 branch locations across Tennessee, Georgia, and Alabama with more than 800 employees.
Since its 2008 reorganization, Five Star has grown revenues three-fold and is prepared to accelerate its growth, according to the company. The investment will support Five Star's plan to maximize market share, introduce new solutions, and expand its operational footprint.
"I am excited to partner with PNC Riverarch Capital to sustain and accelerate the growth of our business," said Al Recher, CEO of Five Star, in a statement. "Our foremost commitment is to provide our customers with exceptional food service solutions, supported by best-in-class customer service."
Michael Hand, managing director of PNC Riverarch Capital, said Five Star's strong value proposition to employers and end consumers has driven "an exceptional operational track record."
"We were particularly attracted to the company's talented management team, entrenched market leadership position, and strong customer relationships," he said. "We look forward to partnering with the Five Star team to continue to build the premier provider of on-site food and beverage solutions in the Southeastern United States."
PNC Riverarch Capital invests in privately held companies headquartered in North America. The firm seeks well-positioned companies where it invests $10 million to $50 million of capital in support of leveraged and management buyouts, recapitalizations, corporate divestitures and growth financings.
PNC Riverarch Capital invests across a variety of industry sectors, including consumer products and services, outsourced business services, specialized manufacturing, and value-added distribution.