George Pyne had all the Proof he needed for latest Bruin Capital majority stake
Catering company Proof of the Pudding has a growing list of sports clients, including major golf events like the Presidents Cup.
Tthree decades before, Bruin Capital Founder and CEO George Pyne spent five years in Atlanta working for the city’s Chamber of Commerce and later for a world-renowned architect John Portman. It was during this period of the early 1990’s that he discovered a local catering business, Proof of the pudding, which provided services to some of the city’s most prominent venues and convention centers. Now some 30 years later, Proof has quietly built a strong and still growing sports practice and Pyne’s Bruin has acquired a majority stake in the company and plans for future expansion.
“I lived in Atlanta from 1990 to 1995, and even then Proof had an incredible reputation,” Pyne recalls. “I can’t believe we’re talking about this in 2023. In the 1990s they were among the best at what they did. So the opportunity to work with them now is very satisfying for me.”
Proof of the Pudding still may not have the notoriety of industry giants like this one Aramark or Sodexo, but it’s hardly a mom-and-pop shop. The 44-year-old company now employs around 1,700 people nationwide and feeds over a million people every year. The company has a long history of managing catering facilities for venues such as Zoo Atlanta and the Jimmy Carter Presidential Library and Museum, and also supplies to the 1996 Olympics.
About a decade ago, the company expanded into collegiate sports, initially providing catering services for suites and club seats at the University of Georgia. Proof of the Pudding now has eight college clients including Alabama, Auburn, Duke, Georgia Tech and Mississippi State. A ninth such deal is being planned. The company has also begun managing practice tables – high-performance athlete catering services – for Duke, Georgia Tech and the Atlanta Hawks.
This is in addition to Proof’s arena business, which includes Gas South Arena and Gateway Center Arena in Georgia. And the company has expanded into automobile racing, providing catering services for Michelin Raceway Road Atlanta and, for its annual Formula 1 race, the Circuit of the Americas. Proof’s golf event clients include the Masters, Tour Championship, Players Championship, Presidents Cup and last weekend’s AT&T Byron Nelson outside of Dallas.
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Adam Noyes, the President of Proof of the Pudding, was pondering what the next chapter for his company might be when a mutual acquaintance introduced him to Pyne more than three years ago. The two hit it off, although initial talks about a possible takeover were put on hold due to COVID. Pyne recalled that the crisis only strengthened his faith in the catering business, as Proof took over catering services for seven overcrowded hospitals.
Negotiations resumed in earnest last September, and the deal was finalized on May 5. Both sides declined to share financial details of the transaction, although the von Noyes family will retain a “significant” minority stake in the company. The catering company has grown rapidly in recent years, particularly with the addition of sports verticals. Revenue is currently in the low nine figures and has grown 800% over the past decade, with most of that growth coming in the last five years.
“At this point in our journey, Bruin can really help us get out there, open some doors for us, and help us with mergers and acquisitions,” Noyes said. “They have a proven track record and can help add value to our existing customers. We have already worked on human resources, increased our strength in marketing and assembled our accounting teams to be ready for this journey. And we are very happy that we are now at the point where we can continue.”
Big names take center stage at Bruin’s first portfolio summit
In late March, Bruin Capital hosted its first portfolio summit at the luxury Fairmont Grand Del Mar hotel north of San Diego. The investment firm brought together executives from five of its portfolio companies – Engine Shop, Full Swing, OddsChecker, TGI Sport and Two Circles – for more than two days of panels and networking. The talks focused on current topics such as changing media trends, the M&A landscape, consumer spending in the sports and entertainment sector and the future of the sports industry.
These discussions were accompanied by stage speakers such as former White House Deputy Chief of Staff Karl Rove, UTA CEO Jeremy Zimmer, Los Angeles Dodgers President and CEO Stan Kasten, and San Diego Padres owner Peter Seidler and CEO, Erik Greupner, excited. Among those in attendance were Steve Bornstein, longtime sports media executive and President of Genius Sports for North America, Ceci Kurzman, board member of UTA and Warner Music Group, CAA’s Chris Silbermann, and former NFL general manager and ESPN insider Mike Tannenbaum.
For Pyne, the deal is partly a bet on the growing value of high-quality, premium experiences centered around sports and entertainment. He also sees synergies with some of Bruin’s existing portfolio companies involved in sports hospitality, namely sports marketing firms two circles And TGI Sports. And Pyne ultimately believes Proof can serve as the foundation upon which Bruin can build a far more complex and holistic company.
“We look at this as a platform, which is hospitality today, but tomorrow there could be other things, other technology, who knows. Ticketing, data, marketing and other elements,” Pyne said. “In addition, we will be aggressive about acquisitions when those opportunities arise.”
“High quality hospitality experiences are part of sport and we work with all the major leagues and federations in the world. We are present in 16 countries and believe we can help to expand [Proof’s] skills,” he added. “We have capital, we have a footprint, and we believe that when we combine those things, good things can happen.”
Chris Smith writes a monthly column on financial news and trends. He can be reached at [email protected].