Restaurants & Hospitality Acquisitions in 2020

Century Golf Partners and an HKI (Hankuk Industry) partnership acquired the member-owned Las Posas Country Club in Camarillo, California, with the sale finalized on December 31, 2020 after an overwhelming member vote. Century Golf will operate the club under its Arnold Palmer Golf Management brand and the buyers plan capital improvements while providing members reciprocal access to Century Golf's Palmer Advantage network.

Sonesta International Hotels Corporation announced a definitive agreement to acquire RLH Corporation (NYSE: RLH), a franchisor with more than 900 hotels. The deal will expand Sonesta's scale and franchising capabilities, creating a combined company with roughly 1,200 hotels across multiple brands; the transaction is expected to close in the first half of 2021 and will be funded with cash-on-hand and/or capital contributions from Sonesta's shareholders.

The parent company of Saladworks — newly organized as WOWorks and fully owned by Centre Lane Partners — has acquired Garbanzo Mediterranean Fresh and Frutta Bowls and consolidated the brands under the WOWorks holding company. Saladworks' operations team will manage the two concepts to drive growth and scale, with Garbanzo CEO James Park remaining on as a special advisor.

TriSpan’s Rising Stars platform made a strategic growth investment in Maman, a French‑themed café and bakery founded in 2014 with multi‑unit locations in New York and Toronto. The capital is intended to accelerate Maman’s expansion plans and scale the brand nationally and beyond; financial terms were not disclosed.

Brentwood Associates has made a strategic minority investment in Snooze, the Denver-based breakfast and brunch restaurant chain, joining existing investors Stripes and Alliance Consumer Growth. The undisclosed deal adds Brentwood partner Rahul Aggarwal to Snooze's board and aims to fund nationwide expansion of the 44-unit concept.

Private equity firm The Halifax Group completed an investment to recapitalize PJU Holdings, Inc. ("PJ United"), the largest Papa John’s franchisee. Halifax partnered with CEO Doug Stephens and PJ United's existing management team to support growth and operational expansion across the company's 194 stores.

Tasty Restaurant Group, through its affiliate Tasty Hut and backed by Los Angeles-based private equity firm Triton Pacific, acquired 37 franchised Pizza Hut restaurants (34 in Northern Virginia and 3 in West Virginia). The deal expands Tasty Hut’s existing Pizza Hut portfolio and is intended to increase regional market share and operational economies of scale.

Investment funds managed by the Goldman Sachs Merchant Banking Division will acquire a significant stake in Zaxby's Operating Company L.P., providing long-term capital to support accelerated growth and expansion into new sales channels. The partnership will help Zaxby's scale nationally from its base of more than 900 restaurants (17 states), and the deal was expected to close by year-end 2020.

Farragut Capital Partners provided senior debt and made an equity co-investment alongside Pelham S2K to support Factorial Restaurant Holdings, LLC's acquisition of 26 Burger King locations. The newly formed, Chicago-based platform (Factorial) will use the capital and a delayed-draw development line to remodel stores and pursue future growth across the Burger King system in the Midwest.

An affiliate of KSL Capital Partners has made a substantial growth investment in Austin-based restaurant group Hai Hospitality to accelerate expansion of its restaurant brands, including Uchi, Uchiko and LORO. Hai’s leadership, including Founding Chef Tyson Cole and CEO Tony Montero, will remain in place; financial terms were not disclosed.

TPG Capital and Canada Pension Plan Investment Board (CPP Investments) made an additional minority investment in Viking Holdings Ltd, the parent company of Viking Cruises, providing approximately US$500 million of net proceeds. The growth capital infusion will support Viking's continued development, health and safety investments (including onboard PCR labs), and preparation for future opportunities as travel resumes.

TriSpan’s restaurant platform Rising Stars acquired a majority investment in Naya Group, a fast-casual Middle Eastern/Mediterranean restaurant chain headquartered in New York. The investment will support Naya’s growth plans to scale its footprint across New York and into additional markets; financial terms were not disclosed.

Atairos has acquired a substantial ownership position in Arcis Golf, the U.S. operator of public and private golf clubs. Fortress Investment Group will retain a significant ownership stake and Arcis Golf's management will continue to run the company as the new capital supports national expansion and enhancements to member amenities.

10 Point Capital has made a growth equity investment in Walk-On's Sports Bistreaux to accelerate the restaurant chain's national expansion. The investment will fund an aggressive rollout — Walk-On's plans to open roughly 150 new locations over the next five years — though terms were not disclosed.

Savory (operator-led growth fund) announced an investment in Austin-based Detroit-style pizza chain Via 313 to support multi-unit expansion and new locations. The deal comes from Savory’s closed $100 million fund and pairs Savory’s operational resources with founders Brandon and Zane Hunt to accelerate growth.

Red Barn Equity Partners, through its special purpose vehicle Red Barn Franchise Holdings LLC (RBFH), made a strategic investment in Dogtopia, acquiring interests from Thomas Franchise Solutions USA LLC and Dogtopia Enterprises LLC. Following the transaction Christopher Kempner (Red Barn) will become Chairman while Neil Gill will remain CEO as Dogtopia pursues further franchise unit growth across the U.S. and Canada.

Three Hills Capital Partners (via its Three Hills Capital Solutions III fund) has invested $35 million in Sant Ambroeus Hospitality Group, the New York–based fine-dining Italian restaurant group that operates Sant Ambroeus, Casa Lever and Felice. The minority, growth-oriented capital (mix of preferred instruments and equity) will support the group's domestic footprint reinforcement and planned North American and European expansion.

Urban Tea Inc. entered into a share purchase agreement to acquire 80% of Guokui Management Inc. for $400,000 in cash. The acquisition gives Urban Tea ownership of the CROP CIRCLE trademark and operations in New York City as part of the company's U.S. expansion plans into casual food and beverage.

Natural Retreats, a national luxury vacation rental management company based in Charlottesville, Virginia, has acquired 360 Blue, a Santa Rosa Beach, Florida–based luxury vacation rental manager that operates over 700 properties across the Emerald Coast and select ski markets. The transaction expands Natural Retreats' footprint in high-end vacation destinations and adds 360 Blue's local operational capabilities and homeowner relationships to Natural Retreats' portfolio.

Levine Leichtman Capital Partners (LLCP) partnered with Tropical Smoothie Cafe's management team to acquire Tropical Smoothie Cafe, a leading franchisor of fast-casual cafes with over 870 units across 44 states. The company will continue to be led by CEO Charles Watson and the existing executive team as LLCP works with management to grow unit count, improve franchisee unit economics and expand system-wide sales; debt financing was provided by Golub Capital.

Golden Gate Capital agreed to sell its remaining equity stake in Red Lobster Seafood Co. to a consortium led by Thai Union Group PCL, an investor group operating under the name Seafood Alliance (led by Paul Kenny and Rit Thirakomen), and Red Lobster management. The deal deepens Thai Union's strategic commitment to Red Lobster and brings additional international restaurant operating expertise to support domestic and international growth; financial terms were not disclosed.

MOD Super-Fast Pizza Holdings, LLC (MOD Pizza) acquired 13 previously franchised MOD Pizza locations across North Carolina from franchisee SD Holdings, which had filed for bankruptcy. The company assumed control of the stores (in Charlotte, Wake Forest, Raleigh, Fayetteville and Asheville), offering employment to eligible staff and expanding its company-owned portfolio in the state.

Portland-based Sortis Holdings, through its Sortis Rescue Fund, has acquired Sustainable Restaurant Group (SRG), owner of the Bamboo Sushi restaurant chain, out of bankruptcy and will assume operational control. Existing investors Bain Capital Double Impact and Kitchen Fund have reinvested in the business; Sortis plans to reopen locations, rehire staff, and pursue a resumed growth strategy after pandemic disruptions.

TowerBrook Capital Partners has acquired UK restaurant operator Azzurri Group through a pre-pack administration, providing over £70 million to restructure the business and its balance sheet. The deal preserves roughly 225 restaurants and protects about 5,000 jobs while enabling the group to reopen sites and pursue recovery following COVID-19 disruption.

Radiance Holdings, the newly formed parent company of Sola Salon Studios, has acquired The Woodhouse Day Spa, a premium day-spa franchise with over 60 locations. The deal brings Woodhouse into Radiance’s portfolio as the holding company builds a collection of beauty, wellness and self-care brands under PE-backed ownership.

Vacation Innovations (VI), backed by investment partner Tritium Partners, has acquired Holiday Systems International (HSI), a travel-technology and membership platform with nearly 400,000 members. The deal adds 12 brands and HSI's suite of booking, loyalty and membership software to VI's portfolio as VI expands its timeshare and broader travel offerings and scales HSI's team and products.

Global investment firm KKR has agreed to acquire Roompot Group, a leading European holiday parks operator and the #1 operator in the Netherlands, from PAI Partners. The deal, subject to customary closing conditions, will support Roompot's further development into a pan-European operator and build on its recent growth under PAI's ownership; financial terms were not disclosed.

TriSpan Opportunities LP (TriSpan OF) established FoodPrep Solutions as a platform in January 2020 and, in June 2020, FoodPrep Solutions completed its first acquisition in the foodservice equipment sales and services sector (the platform's fifth acquisition overall). The platform, led by CEO Jim Mase and sponsored by TriSpan OF, will integrate route-based cutlery exchange and equipment sales & service capabilities to accelerate growth across restaurants, supermarkets, caterers, healthcare facilities and other foodservice end markets.

Parks! America, Inc. acquired substantially all assets of Aggieland Safari (Aggieland Safari Adventure Zoo and Safari Park) effective April 27, 2020 for $7.125 million, financed with bank debt, a seller note and cash. The deal, completed through newly formed subsidiary Aggieland-Parks, Inc., provides geographic diversification for Parks! America's portfolio of wild animal safari parks.

ICV Partners completed a cash acquisition of Diversified Restaurant Holdings, Inc. for approximately $130 million, including assumption of debt and transaction expenses. Concurrently, JK&T executed a 15-store area development agreement and sold certain Buffalo Wild Wings restaurants in Florida and Massachusetts to Inspire Brands; ICV will combine the remaining DRH and JK&T locations to create the largest Buffalo Wild Wings franchisee with over 80 restaurants across five states.

An affiliate of Beekman Investment Partners IV (The Beekman Group) completed a recapitalization of Condado Tacos. Founder and CEO Joe Kahn remains the company's largest individual shareholder and Condado will use the partnership to accelerate growth of its fast-casual taco concept across the Midwest and into new markets.

Cordia Corporation (OTCM: CORG) entered into a letter of intent to acquire The Blind Pig LLC, owner of the Blind Pig Restaurant in Las Vegas, Nevada. Cordia intends to integrate the location into its Las Vegas presence as a dine-in flagship and as the foundation for branded virtual restaurants and delivery operations; the seller is a limited liability company controlled by Cordia CEO Peter Klamka.

Chaac Foods, a restaurant platform backed by Gauge Capital and led by Luis Ibarguengoytia, purchased 102 Pizza Hut franchise locations in the Northeast (NY, NJ, PA, MD and DC) from another franchisee. The deal increases Chaac Foods' Pizza Hut footprint to more than 130 stores as part of its ongoing growth strategy.

Zuul Kitchens acquired key technology assets from online food-ordering platform Ontray and appointed Ontray co-founder Tyler Wiest as Chief Technology Officer. The deal integrates Ontray’s ordering tools into Zuul’s ghost-kitchen offerings to give restaurant members affordable online ordering and improved delivery operations.

Verdant Leisure, the Palatine-backed holiday park operator, has acquired Erigmore Estate (Erigmore Leisure Park) in Birnam, Perthshire, adding roughly 200 pitches and bringing the group's portfolio to ten parks across Scotland and North East England. The deal is the sixth bolt-on since Palatine Private Equity invested in Verdant in April 2016 and supports the company's buy-and-build strategy to scale regionally.

Fast-casual salad chain Chopt has purchased burrito chain Dos Toros Taqueria in a deal funded by private equity firm L Catterton. The two brands will sit under a new parent, Founders Table Restaurant Group (led by Chopt CEO Nick Marsh), remain separate customer-facing concepts and will roll out a shared loyalty program; financial terms were not disclosed.

Chester-based Sykes Holiday Cottages has acquired Pure Cottages Group from private equity investor LDC for an undisclosed sum. The deal brings the Pure Cottages portfolio — a collection of five luxury regional holiday rental brands managing more than 1,500 holiday homes across Cumbria, Cornwall and the Cotswolds — into Sykes' wider network to bolster its premium offering and support further UK and international expansion.

Flight Fit N Fun, a PE-backed developer and operator of indoor adventure parks, acquired 11 locations from Jumpstreet, expanding its footprint across the southern United States and creating the largest exclusively company-owned indoor adventure company in North America. The Jumpstreet parks will retain their brand and on-site management teams as Flight integrates the locations into its platform.

Yum! Brands agreed to acquire all outstanding common shares of The Habit Restaurants, Inc. (The Habit Burger Grill) for $14.00 per share in cash, a transaction valued at approximately $375 million. The acquisition adds a fast-casual, chargrill-focused restaurant concept headquartered in Irvine, California to Yum!'s portfolio and is expected to close by the end of Q2 2020, with The Habit remaining based in Irvine and reporting into Yum!'s management.