Concessions operator OTG has been acquired by a private investor consortium managed by Oaktree Capital Management and Centerbridge Partners. Rick Blatstein, CEO and founder, has stepped down from his role.
At closing of the transaction, the investor consortium intends to name Tom Fricke as chairman of the Board of Directors and interim CEO. Fricke has a long history in the hospitality industry. He was president and CEO of HMSHost for nearly three years in a tenure that ended in August 2014. He started Fricke Consulting shortly after, then joined gastropub chain Bar Louie as CEO, serving from October 2017 through June of 2022.
Fricke’s leadership team will include several members of the existing management team, including Scott Little, chief financial officer; Christopher Redd, general counsel; and Jim Mesterharm, who has been appointed chief transition officer.
The investor consortium, which also includes Sculptor Capital, CPPIB Credit Investments III, and Oak Hill Advisors, has 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. It is also supported by advisors including Dave Barger, co-founder and former CEO of JetBlue; Declan Collier, former CEO of the Dublin Airport (DUB) 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.
The consortium first partnered with OTG in October 2021 to provide capital. With the acquisition, the consortium will provide OTG with new financing to support continued innovation, ongoing airport infrastructure investment, and geographic expansion.
“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 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.”
Blatstein founded OTG in Philadelphia in 1996 and expanded it to become one of the most influential and innovative concessions operators in the industry. Today, OTG operates more than 350 locations across 11 airports: John F. Kennedy International (JFK), LaGuardia (LGA), Newark Liberty International (EWR), Minneapolis-St. Paul International (MSP), Orlando International (MCO), Philadelphia International (PHL) Ronald Reagan Washington National (DCA), Toronto Pearson International (YYZ), Chicago’s O’Hare International (ORD), Denver International (DEN), and George Bush Intercontinental (IAH).
