New York-based private equity house Bregal Sagemount has bought food service procurement software, group purchasing, and data analytics business Buyers Edge.
The group purchasing organisation’s platform looks to provide members discounted prices and rebates through its portfolio of companies, including Dining Alliance, Consolidated Concepts, Buyers Edge Purchasing, Axis Purchasing, Sundell and Associates and others.
Its platform represents 50,000 operator locations, and has an annual spend of more than $7.5bn.
Bregal partner Phil Yates said, “We believe procurement networks in the food services space will follow a similar adoption curve to the healthcare sector.
“Given the restaurant market is largely unpenetrated, we see an exciting opportunity to continue to deliver savings to new members while providing our manufacturer and distributor partners with increased visibility and transparency into their downstream supply chains.”
Goldman Sachs Specialty Lending Group and AB Private Credit Investors provided debt financing for the deal.
Bregal Sagemount closed its first institutional fundraise on its $960m hard cap in 2017.
Investment vehicles associated with Bregal were the sole investors in the $500m predecessor fund, Sagemount I, and made the largest commitment to Sagemount II.
Bregal Sagemount, which was founded in 2012, looks to invest between $15m and $200m per deal, into both control and non-control positions, and also makes junior debt investments.
Targeted sectors include software, digital infrastructure, healthcare IT services, business and consumer services, financial technology and specialty finance.
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