National restaurant chain Logan’s Roadhouse, owned by several private equity firms including New York-based Black Canyon Capital, has a signed an agreement to be acquired by the New York PE firm Kelso & Company for an undisclosed transaction price.
Logan’s Roadhouse, Inc. (Logan’s) announced that it has reached a definitive agreement to be acquired by an affiliate of Kelso & Company (Kelso). Logan’s is owned by affiliates of Bruckmann, Rosser, Sherrill & Co. Inc. (BRS), a New York-based private equity firm, Black Canyon Capital (Black Canyon), a Los Angeles-based private capital firm, Canyon Capital Advisors LLC (Canyon Capital), a Los Angeles-based alternative investment manager and members of Logan’s management. The terms of the transaction were not disclosed.
Tom Vogel, Chief Executive Officer of Logan’s Roadhouse, said, “We are pleased to announce this transaction with Kelso. Kelso is committed to supporting Logan’s as we enter our next growth phase and we look forward to working closely with them as our future financial sponsor. BRS & Black Canyon have served as valuable partners to Logan’s, providing strong support for our continued growth as we’ve successfully navigated a very challenging economic environment.”
Completion of the transaction is subject to regulatory approvals and customary closing conditions.
Credit Suisse and North Point Advisors acted as financial advisors to Logan’s in connection with the transaction.
Kirkland & Ellis LLP acted as legal advisor to Logan’s Roadhouse and Debevoise & Plimpton LLP acted as legal advisor to Kelso & Company.
About Logan’s Roadhouse
Logan’s opened its first restaurant in 1991 in Lexington, KY, and has grown as an affordable, full service restaurant chain to 188 company-owned and 26 franchised Logan’s Roadhouse restaurants in 23 states with approximately 15,000 employees. The Company’s mission is to recreate the traditional American roadhouse by offering consumers value-oriented, high quality, “craveable” meals for lunch and dinner served in the hospitable tradition and distinctive atmosphere reminiscent of an American roadhouse of the 1930’s and 1940’s. Logan’s menu features USDA Fresh Angus steaks, fresh ground steak burgers, fresh chicken dishes and salads, fall-off-the-bone ribs, distinctive fresh-baked yeast rolls and bottomless buckets of peanuts.
About Bruckmann, Rosser, Sherrill & Co.
BRS is a New York based private equity firm with $1.4 billion of committed capital under management focused on investing in middle market consumer goods and services businesses. BRS and its principals have extensive experience investing in the restaurant industry, having completed 16 restaurant investments, including add-on acquisitions, to date. BRS’s current and former investments in the restaurant industry include investments in Logan’s Roadhouse, Ruth’s Hospitality Group, Bravo Brio Restaurant Group, Il Fornaio / Corner Bakery Café, Real Mex Restaurants, McCormick & Schmick’s Seafood Restaurants, California Pizza Kitchen and Au Bon Pain.
About Black Canyon Capital
Black Canyon is a Los Angeles based private capital firm that invests in private securities across the capital structure, including control and non-control private equity and structured debt securities. Since being founded in 2004, Black Canyon has invested over $1 billion in companies across diverse industries that include business services, consumer products and retail, and industrial sectors.
About Canyon Capital Advisors LLC
Canyon Capital Advisors LLC is a leading alternative asset manager headquartered in Los Angeles, California with approximately $18 billion in assets under management.
About Kelso & Company
Kelso & Company is one of the oldest and most established firms specializing in private equity investing. Since 1980, Kelso has made investments in over 100 companies with aggregate initial capitalization at close of over $35 billion. The firm is currently investing its eighth investment partnership, Kelso Investment Associates VIII, L.P., with $5.1 billion of committed capital.