Investor Consortium in Talks to Buy Airport Concessions Firm OTG

A private investor consortium led by funds managed by Oaktree Capital Management, L.P. and Centerbridge Partners, L.P. are in talks to acquire OTG, a hospitality group that provides U.S. airport concessions services.

The consortium also includes Sculptor Capital L.P., CPPIB Credit Investments III Inc., and Oak Hill Advisors, L.P.

The consortium first partnered with OTG in October 2021 to provide capital and plans to provide new financing to support its growth.

OTG founder Rick Blatstein has stepped down as CEO. Following completion of the transaction, the investor consortium plans to appoint Tom Fricke, former HMSHost CEO, as chairman of the board of directors and interim CEO.

Fricke’s team will include several members of the existing management team, including Scott Little, CFO, Christopher Redd, general counsel, and Jim Mesterharm, who has been appointed chief transition officer.

The investor consortium has experience managing companies across the transportation, aviation, hospitality, and infrastructure markets, including airports in North America and Europe.

“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,” said said Emmett McCann, managing director and co-portfolio manager of Oaktree’s transportation infrastructure business.

Today, OTG operates more than 350 locations across 11 airports including John F. Kennedy International, LaGuardia, Newark Liberty International, and Minneapolis-St. Paul International, among others.