Restaurants & Hospitality Acquisitions in Michigan

Chicago-based private investment firm Uncommon Equity LLC has acquired Grand Rapids-based Project BarFly, LLC, which does business as HopCat, a regional casual dining and craft-beer restaurant group operating 12 Michigan locations and one in Lincoln, Nebraska. Financial terms were not disclosed; senior debt was provided by OakNorth Bank PLC and Rob Selati will participate as a strategic investor through Saxonwold Capital as part of the new ownership group.

Under Canvas, the upscale outdoor hospitality operator, has acquired The Fields of Michigan, a 30-acre blueberry farm near South Haven, MI, with 23 guest accommodations. The property is the first closed acquisition in Under Canvas’s new Outdoor Collection (which also highlights existing properties such as Bar N Ranch) and is accepting reservations for the 2025 season.

RCI Hospitality Holdings, Inc. (Nasdaq: RICK) has closed the acquisition of Flight Club, a two-story, 10,000-square-foot gentlemen's club in Inkster (Metro Detroit). The purchase totaled $11.0 million (including $3.0M cash + $5.0M seller financing for the club and $3.0M cash for real estate); RCI expects the club to contribute roughly $2.0 million in annualized adjusted EBITDA and to benefit from RCI's marketing, purchasing and systems capabilities.

Morgan Street Holdings, LLC has acquired Continental Services, a Midwest corporate foodservice provider, from New Heritage Capital. The transaction represents an exit for New Heritage Capital after a period of organic and inorganic growth at Continental, which operates across multiple states and employs more than 1,500 people.

Bowlero Corp. (NYSE: BOWL) has entered into a definitive agreement to acquire Thunderbowl Lanes in Allen Park, Michigan, including the business and the underlying 8 acres of land in an all-cash transaction expected to close in June 2024. The 98,000 sq. ft. facility — the largest bowling center in the United States with 90 lanes and event/banquet space — expands Bowlero’s presence in Michigan and complements its portfolio of location-based entertainment venues.

Memorable Experiences Group (MEG), a platform established by investment sponsor Pareto & Company, has acquired Kokomo's Family Fun Center in Saginaw, Michigan. The acquisition is MEG's inaugural platform purchase as it builds a roll-up of family and location-based entertainment centers, with Wintrust providing debt financing and Jordan Knauff & Company advising the deal.

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.

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.