Hot Stuff Foods today announced a management buyout of the company enabling the company to continue its 20-year legacy in the branded foodservice industry. This recent transaction also supports the company's dynamic growth into key market channels, most notably the 138,000-location convenience store channel.

Under the new agreement, Allied Capital Corporation (ALD) committed $164 million in the management-led recapitalization. Hot Stuff management re-invested a significant portion of its equity ownership in the transaction.

"We are pleased to partner with the management of Hot Stuff Foods in the recapitalization of their business," said Justin Maccarone, managing director of Allied Capital. "Hot Stuff Foods has delivered consistent growth as a market maker in its industry. The company's stable business model and managements' focus on continued growth in its markets makes this investment a great fit for Allied Capital's long term capital."

"We have built a rich tradition in changing the way the market thinks about food and food franchising," said Des Hague, CEO of Hot Stuff Foods. "The completion of the management buyout will allow Hot Stuff to bring more innovation to the marketplace and help sustain our leadership role as the market maker."

Hot Stuff management will continue to execute the day-to-day operations and strategically position the company for long-term sustainable growth.

"We now have in place the right team, the right structure and the right financial resources, through Allied Capital, to achieve our growth objectives," said Hague.

Led by CEO Des Hague, the rest of the management team includes industry veterans who have helped Hot Stuff Foods leverage its success in creating quality grab-and-go foods for busy consumers. It was under this management team that the company was just recently named one of the top 50 quick-serve restaurant franchises in the country by QSR Magazine and was the first c-store concept ever to crack the coveted list.

About Hot Stuff Foods

Hot Stuff Foods(TM) franchises and/or licenses its branded food concepts in over 1600 locations throughout the US, Canada, Europe and Asia. Hot Stuff Foods(TM) offers a number of individual and bundled brands in various categories including Hot Stuff Pizza(R), Hot Stuff Food On the Go(TM), Hot Stuff Food Xpress(TM), Smash Hit Subs(R), Summit Subs(R), C-Street Bakery(TM), Mean Gene's Burgers(R), Mean Gene's Pizza(TM), Stone Willy's Pizza(R), Moose Bros.(R) Pizza, Eddie Pepper's(R), Asian Creations(R), Chix Chicken(R), Nap Hendrix's Southern Grill(TM) and Caffe Origins(TM) Coffee. Hot Stuff Foods(TM) can currently be found on the World Wide Web at www.hotstufffoods.com
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