Restaurants & Hospitality Acquisitions in 2019

NVM Private Equity has invested a further £3 million of growth capital into indoor climbing operator The Climbing Hangar, taking its total investment to £6 million. The funding will support continued site roll-out, infrastructure and personnel investment after the business delivered over 150% revenue growth and grew to five sites and more than 85 employees.

An affiliate of Los Angeles-based private equity firm Triton Pacific completed the acquisition of 117 Pizza Hut restaurants (114 operating, 3 under development) and select real estate assets for about $80 million. The deal — executed by Triton Pacific’s operating platform Tasty Restaurant Group — expands the firm’s quick-service restaurant portfolio across Illinois, Kentucky, North Carolina, South Carolina, Tennessee, Virginia and West Virginia and was a buy of assets from Rage, Inc.

Gauge Capital formed Chaac Foods in partnership with operator Luis Ibarguengoytia and completed an initial investment in a Pizza Hut franchisee operating 32 stores in the U.S. Midwest. Gauge principals Drew Johnson, Sam Banon and Tristan Loiselle joined the Chaac Foods board as the new platform aims to grow QSR and casual-dining holdings in attractive geographies.

Boathouse Capital partnered with independent sponsor Green Shoot Partners to acquire Fresh Dining Concepts, a Coral Gables‑based multi‑unit franchise operator that runs over 50 Auntie Anne's, Cinnabon and Carvel locations along the U.S. East Coast. Boathouse provided participating preferred equity while affiliates of Green Shoot Partners and FDC management invested common equity; debt financing was provided by Bridge Funding Group (a BankUnited subsidiary).

Private equity firm ClearLight Partners has made an investment in Handel's Homemade Ice Cream in partnership with owner Leonard Fisher; terms were not disclosed. Headquartered in Youngstown, Ohio, Handel's operates nearly fifty corporate and franchised scoop shops across multiple U.S. states, and ClearLight said the investment will support national expansion of the brand.

El Cap, the parent company of Planet Granite and Earth Treks (backed by Tengram Capital Partners), has acquired Movement Climbing + Fitness, adding Movement's three Colorado facilities to its network. The transaction expands El Cap's footprint in Colorado, creates the largest climbing-gym footprint in the state, and gives members unified access across locations.

Nolan Capital, the family office of Peter Nolan, has become the majority owner of Ortega National Parks (ONP). The Ortega family (Armand Ortega, Shane Ortega and Tom Williamson) will remain minority owners and board members, with Shane Ortega serving as Co-Chairman, as Nolan Capital provides capital and long-term support to help ONP expand its retail, lodging and hospitality operations in national, state and county parks across the United States.

Brentwood Associates has acquired a majority interest in SSRG Holdings, LLC (Chicken Salad Chick) from Eagle Merchant Partners. The fast-casual chain — led by CEO Scott Deviney and operating 137 locations across 16 states as of the announcement — will continue to pursue growth and geographic expansion; transaction terms were not disclosed.

ICV Partners made a significant investment in JK&T Wings, a leading Buffalo Wild Wings franchisee that owns 42 restaurants across Michigan with additional locations in Massachusetts and Louisiana. The capital will support facility remodels, additional store openings and potential acquisitions of other franchisees, with JK&T management (Kent Ward and Brian Carmody) remaining as investors.

ECI portfolio company The Travel Chapter has acquired Scottish self-catering agency Cottages and Castles, adding the brand and its collection of over 600 properties to The Travel Chapter’s portfolio. The acquisition will make Cottages and Castles The Travel Chapter’s primary Scottish brand and expand marketing reach for property owners across The Travel Chapter’s brands, including holidaycottages.co.uk.

Ergon Capital and Bpifrance have agreed to sell Groupe Looping to its management team—led by founder Laurent Bruloy and CEO Stéphane Da Cunha—in partnership with Mubadala Capital. The deal hands control to the management partners and Mubadala, providing capital and a strategic partner to accelerate Looping’s pan‑European growth across its portfolio of regional leisure parks.

Fitness Holdings Northeast, a leading Crunch Fitness franchise operator, acquired the Crunch Paramus location in Paramus, New Jersey, closing the deal on October 1, 2019. The acquisition expands Fitness Holdings' portfolio to 22 clubs and supports the group's stated 50-club growth strategy to increase membership and market share in the Northeast.

L Catterton completed the acquisition of all outstanding shares of Del Frisco's Restaurant Group, Inc. for approximately $650 million, taking the company private. Concurrently, L Catterton entered an agreement to sell the Del Frisco's Double Eagle Steakhouse and Del Frisco's Grille assets to Landry's, Inc., while retaining bartaco and Barcelona Wine Bar to operate as separate growth-focused businesses.

Global investment firm The Carlyle Group acquired 100% of Atracciones Coney Island SAC and its subsidiaries Divertrónica Medellín SAS and Yukids SpA from Grupo El Comercio and founders Rolando Giha, the Hoyos Family and Matias Allendes. The platform operates over 130 family entertainment centers across Peru, Colombia and Chile (under Coney Park, Coney Active, Happy City and Yukids brands) and Carlyle plans to support regional growth and partnerships with shopping mall operators.

Aimbridge Hospitality and Interstate Hotels & Resorts entered into a definitive agreement to merge, creating a global third-party hotel management leader that will operate more than 1,400 properties across 49 states and 20 countries. Advent International, which acquired a majority stake in Aimbridge earlier in 2019, will assume majority ownership of the combined entity; Kohlberg & Company, which owned Interstate, will relinquish its stake as part of the transaction.

CH&CO, a portfolio company backed by Equistone Partners Europe, has acquired Mitie Catering — comprising Gather & Gather and Creativevents — from Mitie. The bolt-on deal adds c.£137m of turnover, 330 sites across the UK and Ireland and approximately 3,600 team members to CH&CO, and includes a strategic partnership to continue serving Mitie's IFM clients.

AEA Investors' Middle Market Private Equity funds completed the acquisition of Jack's Family Restaurants, a regional quick-service restaurant chain operating approximately 170 company-owned units across Alabama, Tennessee, Georgia and Mississippi. Jack's, headquartered near Birmingham (Homewood), Alabama, operates roughly 170 locations and ~5,600 employees and offers a differentiated Southern-inspired QSR concept with opportunities to expand market share in its current footprint.

Cracker Barrel Old Country Store has acquired Punch Bowl Social, an experiential "eatertainment" restaurant chain, after purchasing L Catterton's stake; terms were not disclosed. L Catterton supported Punch Bowl Social's expansion—more than doubling units to 17—and Cracker Barrel will integrate the concept as part of its portfolio to extend its reach into younger, experience-focused dining customers.

Dutch foodservice operator Bakerstreet has combined with Bart's Retail (operator of the Bakker Bart franchise) to form the newly created Vital Food Group. Bakerstreet will succeed Gilde Equity Management as majority shareholder in the group, aiming to accelerate roll-out of a new store formula and optimize store and e‑commerce operations across the combined platform.

London-based Rhubarb Food Design Ltd., a portfolio company of private equity firm Livingbridge, has acquired New York City-based luxury off-premise caterer Sonnier & Castle. The transaction is an add-on to Rhubarb's hospitality platform and expands its presence and catering capabilities in the U.S. market.

Triton will acquire the tour operating activities of Corendon Holiday Group through its portfolio company Sunweb Group, subject to regulatory approvals and employee consultations; terms were not disclosed. The deal covers Corendon’s tour operations in the Netherlands and Belgium, back‑office operations in Turkey and Corendon Dutch Airlines, and aims to combine Sunweb and Corendon to drive scale, digitalization and airline capacity across the European travel market.

Bregal Freshstream has agreed to acquire a majority stake in UK holiday park operator Away Resorts from LDC, which will retain a minority shareholding. Away Resorts operates six resorts across the UK, generated £63m revenue in 2018 and has grown employees to around 950; the new investor plans a further £25m of investment to accelerate expansion.

Clayton, Dubilier & Rice (CD&R) has made a $150 million investment to acquire a significant stake in MOD Super Fast Pizza Holdings, LLC (MOD Pizza). The growth capital will fund expansion of MOD’s fast-casual pizza footprint (433 locations system-wide), accelerate domestic and international openings, and support investments in off-premise and digital capabilities.

PAI Partners has entered exclusive negotiations to sell B&B Hotels, the France‑headquartered budget hotel chain operating across Europe, to the Merchant Banking Division of Goldman Sachs. The deal—subject to employee consultations and regulatory approvals—is expected to close in H2 2019 and transfers a platform that PAI expanded to 486 hotels and 42,832 rooms across 12 countries.

ABTB, a partnership between Orangewood Partners and ABDD Capital, acquired eight additional Taco Bell restaurants in the greater Louisville, Kentucky market and will integrate them into ABTB’s existing portfolio, which now totals 32 Taco Bell locations. Financial terms were not disclosed; Paris Ackerman LLP provided legal advice on the transaction.

Equistone Partners Europe has invested in CH&CO, a leading UK contract catering and hospitality group headquartered in Reading. The transaction is an acquisition from MML Capital Partners (which realized a reported 3x return); CH&CO's CEO Bill Toner and management retain a material shareholding and Equistone will support further add-on acquisitions and growth.

PF Atlantic, a Planet Fitness franchisee and portfolio company of Monogram Capital Partners, acquired the Falange Planet Fitness franchisee system in New Jersey. Five Points Capital provided unitranche financing to support the transaction, which expands PF Atlantic’s geographic footprint in New Jersey and complements its existing 30-club platform.

Sunshine Fitness Growth Holdings, a Planet Fitness franchisee backed by TSG Consumer Partners, acquired Anchor Fitness LLC’s 13 Planet Fitness club locations across South Carolina and Georgia. MFA Companies acted as exclusive financial advisor to Anchor Fitness; terms were not disclosed. The acquisition expands Sunshine Fitness’s footprint to roughly 80 clubs across the Southeast U.S.

Wellspring Capital Management has closed the acquisition of Lucky Strike Entertainment, LLC, an operator of upscale entertainment venues with 21 locations across the United States. Wellspring — a New York-based private equity firm — said it will partner with Lucky Strike founders to accelerate growth and expand the brand’s footprint; financial terms were not disclosed.

TowerBrook Capital Partners has made a $100 million strategic growth investment in Studio Movie Grill (SMG) via its TowerBrook Structured Opportunities Fund. The non-control capital will help SMG accelerate expansion of its in-theater dining locations across the United States while partnering with founder-CEO Brian Schultz to scale the company.

ECP-PF Holdings Group, Inc., a Planet Fitness franchisee owned by Exaltare Capital Partners, acquired four Planet Fitness franchise locations in Branford, East Haven, Guilford and Hamden, Connecticut from franchisees Jerry Mastrangelo and Michael Katz Sr. and Jr. The deal expands ECP-PF's footprint to 98 locations and was the company's third acquisition in 2019.

MTY Food Group Inc. announced that a wholly-owned subsidiary acquired substantially all of the assets of South Street Burger for approximately $5.1 million. The acquisition (24 franchised and 13 corporate restaurants, including one in Dubai) strengthens MTY's position in the fast-casual/gourmet burger segment and will move South Street Burger operations into MTY's Ontario offices.

TriArtisan Capital Advisors LLC and Paulson & Co. Inc. completed the acquisition of casual-dining chain P.F. Chang's China Bistro Inc. from Centerbridge Partners L.P. The buyers said the partnership will provide financial strength and support a growth strategy to scale dine-in and off-premises channels domestically and internationally.

Diversified Restaurant Holdings, Inc. (Nasdaq: SAUC) entered into an agreement to acquire nine Buffalo Wild Wings restaurants in the Chicago market for $22.5 million. The acquisition expands DRH’s Midwest footprint, adds scale to leverage infrastructure and marketing, and is expected to close in Q2 subject to franchisor consent and customary conditions.

Los Angeles-based private equity firm Butterfly Equity and global investor KKR have merged two fast-casual brands, Lemonade Restaurant Group and Modern Market Eatery, to form Modern Restaurant Concepts, a national better-for-you restaurant platform. KKR contributed its investment in Lemonade and will be a shareholder alongside Butterfly and the management team; the combined company will pursue expanded corporate growth, franchising and licensing.

NewSpring Mezzanine (NewSpring) and Larsen MacColl Partners completed a growth investment in Turning Point Holding Company, LLC, the Eatontown, New Jersey–based breakfast, brunch and lunch chain. The capital will be used to fund new unit growth and geographic expansion while supporting existing locations; terms were not disclosed.

City Capital Ventures (CCV), a Chicago-based private investment partnership, has acquired Toronto-based Redberry Group, one of North America’s largest quick-service restaurant franchisees with 134 restaurants (111 Burger King and 23 Pizza Hut) across Canada. Financial terms were not disclosed; CCV is partnering with Saxonwold Capital and has secured senior debt from CIBC and Scotiabank while engaging Spencer Stuart to lead a CEO search.

L Catterton's Latin America fund has made a significant strategic investment in Grupo MYT to support and accelerate the restaurant group's expansion across Mexico. Terms were not disclosed; the investment will be used to grow Grupo MYT's multi-brand casual dining portfolio and operations.

The Carlyle Group has agreed to make a significant minority investment in Grupo Madero, Brazil’s largest casual dining and fast-casual restaurant chain, to support new restaurant growth and continued investment in operations. Terms were not disclosed; the investment is sourced from Carlyle Partners VII and remains subject to antitrust review.

OT Growth Partners, a portfolio company of Kian Capital, has acquired FIT Enterprise, the Orangetheory Fitness area developer for Iowa. The deal brings seven operating studios (with additional studios under development) into OT Growth Partners' platform and expands its footprint in the Midwest; terms were not disclosed.

Nordic Camping & Resort BidCo AB, indirectly majority owned by private equity firm Norvestor VII L.P., has signed an agreement to acquire First Camp Sverige Holding AB, an operator of 14 camping sites in Sweden and Denmark. The deal creates a new Nordic camping-site group with 40 destinations, approaching SEK 400 million in revenues, roughly 700 employees and about 2.5 million guest nights annually.

Mosaic Capital Partners announced an ESOP acquisition of Best Friends Pet Hotel, a national pet hotel operator with 30 U.S. locations and ~90,000 active clients, enabling employees to become owners. Industry veteran Reed Howlett joined as an investor and board member; ICG Capital Securities served as Best Friends' financial advisor.

Lindsay Goldberg, a New York‑based private investment firm, has acquired Affordable Suites of America, a Myrtle Beach–based owner, operator and franchisor of extended‑stay hotels. The portfolio includes 20 properties across Georgia, Indiana, North Carolina, South Carolina and Virginia; Lindsay Goldberg said it will grow the business through strategic development and acquisitions under new CEO Gary DeLapp.

LDC has taken a significant minority stake in Zip World, the North Wales-based outdoor adventure operator, in a deal that values the business at £45 million. The investment will fund Zip World's growth plans to add new attractions at its existing Snowdonia sites and expand the adventure concept across the UK as the business aims to double in size over the next three years.

Advent International has signed a definitive agreement to acquire a majority ownership interest in Aimbridge Hospitality from Lee Equity Partners and General Atlantic. Aimbridge’s senior management will remain in place with a meaningful equity stake as Advent supports the company’s continued growth and international expansion; financial terms were not disclosed.