Bruckmann, Rosser, Sherrill & Co. and Black Canyon Capital have completed the sale of Logan’s Roadhouse to Kelso & Co. Financial terms of the deal, announced in August, were not disclsoed. Bruckmann, Rosser is a New York PE shop while Black Canon is a buyout shop in Los Angeles. Kelso, the buyer, is also a New York PE firm. Nashville-based Logan’s Roadhouse, which offers mesquite-grilled steaks, has 180 company-operated and 26 franchised restaurants in 23 states.
Bruckmann, Rosser, Sherrill & Co. (BRS), a New York-based private equity firm with extensive experience in the restaurant sector, and Black Canyon Capital, a Los Angeles-based private equity firm, announced today that they have successfully completed the sale of their portfolio company Logan’s Roadhouse Inc. to an affiliate of New York based private equity firm Kelso & Company.
“Logan’s performed well during the entire period of our ownership, including the recession,” said Harold O. Rosser, BRS founder and managing director. “EBITDA increased from $43 million at the time of our investment to $76 million at the time of sale. This was both an operational and an investment success story benefiting all stakeholders, including Logan’s customers. The Logan’s team has outperformed expectations since day one of our investment and we wish them and Kelso continued success,” concluded Mr. Rosser.
BRS has a history of successful restaurant investments, with 16 transactions in the sector to date. Earlier this year it acquired a stake in Ruth’s Hospitality Group.
“We are extremely pleased with the successful outcome of the Logan’s transaction during what was a very difficult economic environment,” said Michael Hooks, Black Canyon founder and managing director. “The Logan’s management team has done a terrific job. We are proud of our association with Logan’s and we are confident that the Company will continue to thrive in the years ahead.”
Black Canyon’s investment in Logan’s was made through its $500 million Black Canyon Direct Investment Fund raised in 2006. The sale of Logan’s was the fourth investment exit from that fund.
BRS, Black Canyon, Canyon Capital Advisors LLC, and members of Logan’s management team had owned Logan’s since December 2006.
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 equity 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.