PNC Riverarch Capital Acquires Five Star Food Service

Posted On: 11/1/2016

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TAGS: vending, Five Star Food Service, PNC Riverarch Capital, Navigation Capital, micromarket, office coffee service, foodservice, Michael Hand, Al Recher

CHATTANOOGA, TN -- Five Star Food Service said it has been acquired by PNC Riverarch Capital, a middle-market private-equity firm. Five Star, a Canteen Vending franchise, was previously owned by private-equity group Navigation Capital. Terms were not disclosed.

Founded in 1993, Five Star serves reportedly has more than 5,500 clients with vending, micromarket, office coffee and dining services. It is headquartered in Chattanooga, TN, and operates from 12 branch locations in Tennessee, Georgia and Alabama.

Since its 2008 reorganization, Five Star has reportedly grown revenues threefold. The company said PNC Riverarch Capital's investment will support its plan to maximize market share, introduce new services and expand its operational footprint. PNC specializes in industries offering consumer products and services.

"Five Star's strong value proposition to employers and end consumers has driven an exceptional operational track record," said PNC managing director Michael Hand. He added that the private-equity firm was attracted to the company's management team, market leadership and strong customer relationships.

"We look forward to partnering with the Five Star team to continue to build the premier provider of onsite food and beverage solutions in the Southeastern United States," Hand continued. "We are immediately pursuing multiple add-on acquisition targets and have a healthy appetite for additional opportunities."

Five Star chief executive Al Recher said his company's partnership with PNC Riverarch Capital is expected to accelerate growth and enhance foodservice and vending solutions.