The private equity investor is expected to announce shortly that it was among the group of investors led by minority investor Chanticleer Holdings that bought Hooters of America and Texas Wings Inc., the largest Hooters franchisees. Connecticut-based PE firm KarpReilly was also in on the transaction.
Terms of the transaction were not specified and the stakes controlled by Chanticleer Holdings, KarpReilly and HIG Capital were not clarified at press time.
Thanks to a loan Chanticleer had extended to Hooters, the investor had first right of refusal, but it, and KarpReilly, are both “de minimus investors,” according to one source who spoke with peHUB.
Late last year, according to reports, Hooters sued Chanticleer in Delaware Chancery Court for the investment firm’s attempt to block the company’s sale to Wellspring Capital Management.
At press time, it was not immediately clear which fund from HIG invested in Hooters. KarpReilly did not respond to a request for comment. HIG did not respond to a request for comment, either.