Sentinel and management acquire Border Foods in a transaction

NEW YORK, September 29, 1996 - Sentinel Capital Partners and management of Border Foods, Inc. are pleased to announce the acquisition of 74 Taco Bell restaurants in Minnesota from Taco Bell Corporation, a subsidiary of PepsiCo, Inc. Border Foods now owns and operates all the Taco Bell restaurants in Minnesota and has exclusive rights to develop the Taco Bell brand in that state. Sentinel is the only U.S. private equity firm to have been granted such exclusive development rights. Sentinel originated, sponsored and provided the equity financing in a transaction valued at $33,000,000. Border Foods is well-positioned to acquire additional restaurants from Taco Bell.

PepsiCo owns one of the largest worldwide Quick Service Restaurant (QSR) operations, including Taco Bell, Pizza Hut, and KFC. Taco Bell, with $6.0 billion in system-wide revenues and more than 5,700 restaurants, is the largest Mexican-food QSR operation in the United States and the fourth largest QSR operation nationwide. The Taco Bell system has a 70% share of the Mexican-food QSR market, both nationwide and in Minnesota.