Lower middle market private equity firm Sentinel Capital Partners has acquired Newk’s Holding Company. No financial terms were disclosed. Arlington Capital Advisors acted as financial advisor to Newk’s on the deal. Newk’s Holding Company owns and operates the Newk’s Eatery franchise.
NEW YORK, March 25, 2013 – Sentinel Capital Partners, a private equity firm that invests in promising companies in the lower end of the middle market, today announced the closing of its acquisition of Newk’s Holding Company, LLC, owner and operator of the Newk’s Eatery franchise. Terms of the purchase agreement were not disclosed. Arlington Capital Advisors served as financial advisor to Newk’s.
Newk’s is a rapidly growing market leader in the fast casual restaurant segment with a diverse menu of high quality, made-from-scratch sandwiches, soups, salads and pizzas. The Newk’s Eatery system consists of 67 restaurants located in the Southeast.
“We are very pleased to be partnering with Newk’s strong leadership team who are pioneers in the fast casual dining market,” said James Coady, a Sentinel partner. “Newk’s is well positioned for accelerating its growth and is very well aligned with the emerging fast casual trend in the restaurant industry.”
Chris Newcomb, CEO and co-founder of Newk’s Eatery, commented, “Sentinel is a perfect strategic partner whose deep experience and success in supporting high growth restaurant and franchising businesses will allow Newk’s to realize its full potential.”
The acquisition of Newk’s Eatery adds to Sentinel’s extensive franchising experience. Since its inception, Sentinel has completed eight similar transactions including Border Foods, a leading franchisee in the Taco Bell system; Checkers/Rally’s, the largest franchisor and operator of dual drive-thru hamburger QSRs in the U.S.; Cottman Transmission Systems, the nation’s second-largest franchisor of transmission repair depots; Falcon Holdings, the largest franchisee of Church’s Chicken restaurants; Huddle House, a leading franchisor of family dining restaurants in the Southeast; Interim Healthcare, the nation’s largest franchisor of home-based healthcare services; Massage Envy, the nation’s largest provider and franchisor of therapeutic massage and spa services; and Southern California Pizza Company, a 223-unit Pizza Hut franchisee operating in the greater Los Angeles market.
About Sentinel Capital Partners
Sentinel Capital Partners specializes in buying and building companies in the lower end of the middle market in the United States and Canada in partnership with management. Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses. Sentinel invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of established businesses with EBITDA of up to $40 million. Sentinel also invests in special situations, including balance sheet restructurings, and operational turnarounds. For more information about Sentinel, visit www.sentinelpartners.com.
About Newk’s Eatery
The Newk’s Eatery system began in 2004 as a local-owned sandwich shop in Oxford, Mississippi and has grown into one of the fastest growing franchisors of fast casual restaurants throughout the Southeastern United States. Newk’s offers a diverse menu of high quality, made-from-scratch sandwiches, soups, salads, and pizzas. For more information about Newk’s Eatery, visit www.newks.com.