Turnaround Of The Year: Beach-themed restaurants, $4.99 platter get Captain D’s back on track


SNAPSHOT

Firm: Sun Capital Partners Inc

Target: Captain D’s Seafood Restaurant

Hold Period: About three and half years

Investment multiple: 7.9x

Financial adviser: North Point Advisors (representing Sun Capital in sale)

Legal adviser: Kirkland & Ellis (Sun Capital)

Lender: Cerberus Capital Management

WHY THE FIRM WON

  • Made smart hire in CEO Philip Greifeld early on
  • More than doubled EBITDA during hold period, to $25.5 million
  • Added less expensive platter to draw in customers
  • Invested in new equipment, decor; new menu items paid dividends

Sun Capital Partners is no stranger to restaurant turnarounds, having dug into such companies as Friendly’s and Boston Market. And its experience showed with the rapid revitalization of a sagging seafood chain called Captain D’s Seafood Restaurant

Over a three-and-a-half-year hold that ended with the December 2013 sale of the business, Sun Capital brought in a new CEO who proved to be a great motivator, introduced $4.99 meals that appealed to cost-sensitive consumers struggling in the aftermath ...

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