OTG Announces Strategic Growth Plan to Effectuate Transaction with Investor Consortium and Leadership Transition

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Jan 05, 2024, 09:00 ET

Secures New Funding from an Experienced Investor Consortium to Support Ongoing Operations and Strategic Growth Opportunities

NEW YORK, Jan. 5, 2024 /PRNewswire/ -- OTG ("OTG" or the "Company"), the hospitality group responsible for transforming the airport dining experience across the country, today announced that it has launched a series of initiatives to position the business for long-term growth and stability. The Company is working collaboratively with a private investor consortium (the "Investor Consortium") led by funds managed by Oaktree Capital Management, L.P. ("Oaktree") and Centerbridge Partners, L.P. ("Centerbridge"), to effectuate a transaction, under which the Investor Consortium will acquire OTG. The Investor Consortium also includes Sculptor Capital L.P., CPPIB Credit Investments III Inc., and Oak Hill Advisors, L.P.

At closing of the transaction, the Investor Consortium intends to name Tom Fricke as Chairman of the Board of Directors and interim CEO. Mr. Fricke is an operating executive with over 30 years of experience leading transformational change at businesses in the consumer products and retail sectors. Founder Rick Blatstein has stepped down from his role as CEO, and in the interim, OTG will be led by Mr. Fricke and the existing management team, including Scott Little, Chief Financial Officer, Christopher Redd, General Counsel, and Jim Mesterharm, who has been appointed Chief Transition Officer.

Rick Blatstein stated: "I'd like to thank all of the dedicated Crewmembers of OTG, suppliers, business partners, airlines, airport authorities and everyone who helped the company become what it is today. I look forward to seeing what OTG does next."

The Investor Consortium has extensive experience managing companies across the transportation, aviation, hospitality, and infrastructure markets, including airports in North America and Europe, as well as decades of experience investing in hospitality, ports, railroads, and food and beverage. The Consortium is also supported by advisors including Dave Barger, co-founder and former CEO of JetBlue; Declan Collier, former CEO of the Dublin Airport Authority and the London City Airport; and Anthony Coscia, former Chairman of the Board of Commissioners of the Port Authority of New York and New Jersey. To help advance the Company's growth plan, the Investor Consortium will provide the Company with new financing to support continued innovation, ongoing airport infrastructure investment, and geographic expansion. The Investor Consortium first partnered with OTG in October 2021 to provide OTG with capital to fuel its growth.

"We believe in the long-term success of OTG and given our group's significant resources and extensive experience investing in the transportation, food and beverage, and infrastructure sectors, we are the ideal partner to support the Company in its next phase of growth," said Emmett McCann, Managing Director and Co-Portfolio Manager of Oaktree's Transportation Infrastructure business, on behalf of the Investor Consortium. "OTG represents a critical piece of infrastructure across 11 of the world's busiest airports, and our group is committed to working closely with the team to expand OTG's geographic footprint, drive technological innovation, and position the business for long-term success."

"As we emerge from a period of disruption across the aviation industry, now is the opportune moment for OTG to supercharge its strategic plan and transform the business to capitalize on tailwinds across the sector," said Scott Little. "The Investor Consortium brings significant resources, new capital investment, and experience across transportation and infrastructure, and the group's continued support of the business underscores their confidence in our growth proposition. We look forward to working closely with our investors as we continue elevating the airport dining experience for travelers across North America."

About OTG
OTG develops and operates restaurants, retail markets and food halls in airports throughout North America. With more than 350 locations across 22 terminals in 11 of the world's busiest travel hubs, OTG continues to elevate the passenger-terminal relationship by merging state-of-the-art technology with farm-to-terminal dining, award-winning cuisine, carefully curated food and retail options, world-class hospitality, and a striking redesign of the terminal space. Founded in Philadelphia in 1996, OTG serves hundreds of millions of passengers annually. For more information, visit www.otgexp.com.

About Oaktree
Oaktree is a leader among global investment managers specializing in alternative investments, with $183 billion in assets under management as of September 30, 2023. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in credit, private equity, real assets and listed equities. The firm has over 1,200 employees and 21 offices worldwide. For additional information, please visit Oaktree's website at http://www.oaktreecapital.com/.

About Centerbridge Partners
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines — Private Equity, Private Credit and Real Estate — in an effort to develop the most attractive opportunities for its investors. The firm was founded in 2005 and as of December 31, 2023, has approximately $38 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies. For more information, please visit www.centerbridge.com and LinkedIn.

About Sculptor
Sculptor is a leading global alternative asset manager and a specialist in opportunistic investing. For over 25 years, Sculptor has pursued consistent outperformance by building an operating model and culture which balance the ability to act swiftly on market opportunity with rigorous diligence that minimizes risk. Sculptor's model is driven by a global team that is predominantly home-grown, long tenured and incentivized to put client outcomes first. With offices in New York, London and Hong Kong, Sculptor invests across credit, real estate and multi-strategy platforms in all major geographies. As of November 1, 2023, Sculptor had approximately $32.8 billion in assets under management.

About CPP Investments
Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 21 million contributors and beneficiaries of the Canada Pension Plan. In order to build diversified portfolios of assets, investments are made around the world in public equities, private equities, real estate, infrastructure and fixed income. Headquartered in Toronto, with offices in Hong Kong, London, Luxembourg, Mumbai, New York City, San Francisco, São Paulo and Sydney, CPP Investments is governed and managed independently of the Canada Pension Plan and at arm's length from governments. At September 30, 2023, the Fund totalled C$576 billion. For more information, please visit www.cppinvestments.com.

About OHA
Oak Hill Advisors (OHA) is a leading global credit-focused alternative asset manager with over 30 years of investment experience. OHA works with institutions and individuals and seeks to deliver a consistent track record of risk-adjusted returns with downside focus. The firm manages approximately $63 billion of capital across credit strategies in commingled funds, collateralized loan obligations and single investor mandates as of September 30, 2023. OHA's emphasis on long-term partnerships with companies, sponsors and other partners provides access to a proprietary opportunity set allowing for customized credit solutions with strength across all market cycles. With over 420 experienced professionals across six global offices, OHA brings a collaborative approach to offering investors a single platform to meet their diverse credit needs. OHA is the private markets platform of T. Rowe Price Group, Inc. For more information, please visit oakhilladvisors.com.

Contacts

Joele Frank, Wilkinson Brimmer Katcher
Jon Keehner / Kate Thompson / Erik Carlson
[email protected]

SOURCE OTG Management