Exaltare Capital Management, LLC acquired GF Midwest, Inc., one of the largest developers and operators of the Good Feet Store, operating 23 franchises across nine states. GF Midwest is headquartered in Milwaukee, WI.
The Good Feet Store has served customers by selling proprietary arch supports for over 30 years.
GF Midwest was founded by Arnold Pereira in 2000, who was one of the first franchisees in the Good Feet Store brand. The company has grown to 23 retail locations and is the second-largest franchisee in the Good Feet system. Following this investment, Arnold Pereira will continue to be the company’s CEO and remain a significant shareholder.
Exaltare’s managing partner and founder, Omar Simmons, said, “We are excited to partner with a leading franchisee in the Good Feet Store system. GF Midwest has a strong track record of growth and we plan to help scale the company via new store development and acquisitions. The company’s growth plan will help it enable more customers to live healthier, more active lives.”
Arnold Pereira stated, “This partnership with Exaltare will enable GF Midwest to accelerate its growth. I am excited to work with the Exaltare team, with their experience in growing franchised multi-unit businesses, they stood out as a great partner for the next phase of growth for GF Midwest.”
Richard Moore, the CEO of the franchisor, Good Feet Worldwide, said, “We are delighted and honored to have Exaltare joining the Good Feet family as a strategic partner to one of our longest-standing and largest franchisees, the Pereiras. Exaltare brings deep and relevant expertise based on its track record of successful health and wellness investments, such as those in Planet Fitness and Urban Air. Having worked with Exaltare before Good Feet, I know firsthand how well Exaltare collaborates with its portfolio companies, seeking to add value while allowing the company to operate the business on a day-to-day basis. Exaltare is a perfect fit with Good Feet’s mission, brand, and business overall.”
This acquisition is Exaltare’s third platform in franchising, and in each platform, Exaltare has been the first institutional investor in the franchise system. In Planet Fitness, Exaltare grew its platform from 15 units to 108 before selling a controlling stake in 2021. In 2022, Exaltare invested in the Urban Air franchise system by forming Elevated Venture Holdings, with parks in Texas, Florida and Oklahoma, and is actively growing via acquisition and development.
The transaction was financed by Exaltare Capital, Genesis Park and Tecum Capital who provided debt and equity capital.
Exaltare’s director, Alexei Popov, stated, “We could not be more excited to join forces with our partners in this investment – Arnold Pereira and the GF Midwest team, the Good Feet system, and our financing partners, Genesis Park and Tecum Capital. This is our first investment alongside Genesis Park and Tecum Capital, and they have been great partners and flexible and supportive throughout the transaction.”
Triago advised on capital raising for this transaction while DLA Piper acted as Exaltare’s legal advisor.
