Sun Capital Partners has divested its stake in Italian restaurant chain Fazoli’s Group Inc to Sentinel Capital Partners. No financial terms were disclosed. Duff & Phelps provided financial advice to Fazoli’s on the transaction.
BOCA RATON, FL – July 7, 2015 – Sun Capital Partners, Inc. (“Sun Capital”), a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies, today announced that an affiliate has completed the sale of its investment in Fazoli’s Group, Inc. (“Fazoli’s” or the “Company”), a premium quick service Italian restaurant with 124 company-owned and 89 independent franchised locations in 26 states, to Sentinel Capital Partners. Terms of the private transaction were not disclosed.
Headquartered in Lexington, Kentucky, Fazoli’s is the only major, freestanding Italian quick service restaurant chain focused on a variety of traditional and innovative Italian food offerings, including its signature freshly-baked breadsticks, fresh-made pastas, Submarinos®, pizza, salads, and desserts.
Following the acquisition of Fazoli’s by a Sun Capital affiliate in 2006, significant operational initiatives were implemented that resulted in same store sales growth and improved profitability. These initiatives included management team enhancements, the revitalization of the Company’s menu through an improvement in food quality and variety, investments in internal and external facility and décor updates, the introduction of enhanced guest experience and service programs, a refining of marketing tactics, and the implementation of cost saving initiatives that streamlined operations.
“Fazoli’s strong performance is a testament to the combined impact Sun Capital’s deep restaurant expertise and a world-class management team can have in transforming potential into sustained results,” said Marc Leder, Co-CEO at Sun Capital. “We firmly believe Fazoli’s is well-positioned to achieve continued success under its new owner.”
“This transaction marks the culmination of our successful partnership with the Company’s management team that revitalized Fazoli’s award-winning brand,” said M. Steven Liff, Senior Managing Director at Sun Capital. “The largest menu upgrade in the Company’s history combined with a renewed focus on providing its customers with an enhanced dining experience has positioned Fazoli’s as a strong player in the premium QSR/fast casual segment, with plenty of opportunity for future growth.”
Sun Capital has strong expertise in the restaurant sector through its investments in current and former affiliated portfolio companies, including Bar Louie Restaurants, a neighborhood bar and eatery with more than 70 locations across the U.S.; Boston Market, a fast casual restaurant serving quality, home style meals at a convenient value in more than 460 nationwide locations; and Captain D’s, a leading seafood quick service restaurant.
Duff & Phelps served as the exclusive financial advisor and Kirkland & Ellis served as the exclusive legal counsel to Fazoli’s.
About Sun Capital Partners, Inc.
Sun Capital Partners is a global private equity firm focused on identifying companies’ untapped potential and leveraging its deep operational and financial resources to transform results. Sun Capital is a trusted partner that is recognized for its investment and operational experience, including particular expertise in the consumer products and services, food and beverage, industrial, packaging, chemical, building products, automotive, restaurant, and retail sectors. Since 1995, Sun Capital has invested in more than 315 companies worldwide across a broad range of industries and transaction structures. Sun Capital has offices in Boca Raton, Los Angeles and New York, and affiliates in London, Frankfurt, Paris, Stockholm and Shenzhen. For more information, visit www.SunCapPart.com.