Grotech Capital Group, the venture capital firm that led the acquisition of Captain D’s from Dallas-based Lone Star Funds on Jan. 5, reportedly is in talks to buy the 7,603-unit Dunkin’ Brands chain pending success of the French distillery giant Pernod Ricard’s bid to take over Dunkin’s London-based parent Allied Domecq.
An industry source meanwhile said former Yorkshire Global Restaurants chairman and chief executive Sidney Feltenstein, 2004 International Franchise Association chairman, is a key consultant and potential player in the Grotech-Dunkin’ deal.
A Dunkin’ veteran in the 1970s and 1980s, Feltenstein was backed by Grotech in 1995 when his Sagittarius Group acquired the 600-unit A&W brand. In 1999, Feltenstein bought ailing Long John Silver’s, formed the Yorkshire Global group and grew both brands successfully. Yorkshire was acquired by Yum Brands in 2002.
In a phone interview, Feltenstein denied being a player in the Dunkin’ acquisition talks but did not rule out future involvement if the purchase is consummated. Grotech managing general partner Frank Adams did not return calls by presstime.
Grotech led the Captain D’s buyout with consortium partner Boston-based Charlesbank Capital Partners. Former LJS president and chief operating officer Ron Powell was named chairman of Captain D’s LLC after the deal, and former LJS operations senior vice president Alan Caldwell assumed the same title at Captain D’s. Powell also became president and CEO of Delaware-based Sagittarius II Acquisitions, the Captain D’s holding group.
