Finance company buys control of Huddle House

Nation's Restaurant News,  Jan 1, 2007  

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DECATUR, GA. -- A controlling stake in Huddle House Inc., franchisor of a 400-unit namesake family-restaurant chain, has been acquired by the Washington-based finance firm Allied Capital Corp.

Allied said it had committed $124.1 million to the deal, but it was unclear whether that represented the purchase price. The buyer said its agreement with the unidentified sellers of Huddle House included the establishment of a revolving credit facility and a senior-term loan, as well as the purchase of equity. Allied also indicated that Huddle House's management was also participating in the deal through a "significant" debt and equity investment.

The chain's president and chief executive, Phil Greifeld, said the investment would enable Huddle House to enter new markets. Huddle House currently operates in 17 Southeastern and Midwestern states, serving breakfast, lunch and dinner.

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