Brentwood Associates, a Los Angeles-based private equity investment firm, announced that it has acquired K-MAC Holdings Corp., headquartered in Fort Smith, AR. K-MAC is one of the largest Taco Bell franchisees in the U.S. and also operates KFC and Golden Corral restaurants. K-MAC is led by president and CEO Sam Fiori and COO Tina Reagan, who will both continue to lead the business going forward.

Founded in 1964 by Ken McGruder, K-MAC has grown to be one of the largest YUM! franchisees in the country. The company has grown over the past few decades through a combination of new store openings and acquisitions. Today, K-MAC operates 190 restaurant locations, including 166 Taco Bell restaurants, 19 KFC restaurants and five Golden Corral restaurants. The company’s stores are located in the six states of Arkansas, Indiana, Missouri, Oklahoma, Tennessee and Texas.

Brentwood is partnering with Arlon Food and Agriculture Investment Program and Northwestern Mutual Capital on the equity portion of the transaction. BofA Merrill Lynch, Wells Fargo Bank, and SunTrust Robinson Humphrey were joint lead arrangers on the senior debt financing supporting the acquisition.

This marks the third investment in the restaurant industry, and second investment Brentwood has made in the YUM! system. In 2004, Brentwood made an investment in Pacific Island Restaurants, a franchisee of 89 Pizza Hut and Taco Bell restaurants in Hawaii, Guam and Saipan. K-MAC is the seventh investment from Brentwood Associates Private Equity IV, L.P.