TPG Growth said Nov. 13 that it acquired a majority stake in Mendocino Farms. Mendocino Farmswas the seller. Financial terms weren’t announced. Mario Del Pero and Ellen Chen, who co-founded Mendocino Farms in 2005, will remain the largest individual shareholders. Mendocino Farms, of Los Angeles, is a fast casual restaurant concept that offers sandwiches and salads through its 16 locations.
LOS ANGELES & SAN FRANCISCO & FORT WORTH, Texas–November 13, 2017–TPG Growth, the middle market and growth equity platform of alternative asset firm TPG, today announced that it has acquired a majority stake in Mendocino Farms, a Southern California-based restaurant chain serving chef-inspired sandwiches and salads. TPG Growth acquired its stake from L Catterton. Mario Del Pero and Ellen Chen, who co-founded Mendocino Farms in 2005, will remain the largest individual shareholders. Additional terms of the transaction were not disclosed.
Harald Herrmann will also be joining Mendocino Farms as CEO. Herrmann is a seasoned restaurant executive who most recently served as President of Darden’s $1.5 billion Specialty Restaurant Group, which includes well-recognized and unique concepts such as The Capital Grille, Seasons 52, Eddie V’s, and Bahama Breeze. Prior to that, Herrmann co-founded The Yard House, led its expansion to one of the most successful independent restaurant chains in the US, and was named President and CEO in 2007.
“I’m thrilled to be joining Mario, Ellen, and the Mendocino Farms team,” said Herrmann. “They have built a great business and culture thus far, and we look forward to introducing more Californians and consumers across the country to Mendocino Farms.”
“Mario and I have been looking for the right partners to help achieve our mission of growing Mendo, while staying true to the brand’s culture and values. We are thrilled to have Harald and TPG Growth as our new partners,” said Co-Founder Ellen Chen.
Mendocino Farms now operates restaurants across 16 locations in Los Angeles, Orange County, and San Diego. Focused on mindful sourcing, each location partners with local farmers and food artisans to create sandwiches and salads made from local, trusted, seasonal ingredients. Furthering this commitment to quality, Mendocino Farms offers an elevated hospitality experience with interiors that rival polished casual restaurants.
“Mendocino Farms is revolutionizing the restaurant industry with chef-driven food made from the best ingredients, served by passionate people, in an inviting neighborhood gathering place,” said Mario Del Pero, Co-Founder of Mendocino Farms. “TPG Growth is the ideal partner to help Mendocino accelerate our next stage of growth while staying true to our values. Ellen and I also couldn’t be more excited to have Harald as our CEO; his soulfulness and mindfulness are legendary and a perfect fit for our team.”
“As we look at investing in the restaurant space, we’ve seen that consumers are not only looking for higher-quality but also uniqueness – more distinctive flavors and more elevated experiences,” said Sanjay Banker, Partner at TPG Growth. “Mendocino Farms has a creative culinary approach and a community-centric spirit that makes it an exciting restaurant concept with significant growth potential. We look forward to working with Mario, Ellen, and Harald to continue building the business.”
This investment builds on TPG Growth’s strategy of investing in innovative retail businesses that have meaningful growth potential. In September of 2016, TPG Growth invested in Philz Coffee, a founder-driven, San Francisco-based “third wave” coffeehouse with over 40 locations well-known for unique custom blends, inviting environments, and a passionate consumer following. Across its platforms, TPG has a history of identifying and investing in strong consumer brands, including Airbnb, Beautycounter, e.l.f. Cosmetics, Gelson’s Markets, and Spotify.
About Mendocino Farms
Mendocino Farms is a 16 unit, Southern California based, premium fast casual restaurant concept with a menu focused on chef driven sandwiches and salads, featuring local, sustainable ingredients. Mendo was founded on three Values- create neighborhood gathering places, sell happy to our guests and team members by enriching their lives and support local farmers and artisans that deserve it. Because of Mendocino Farms commitment to their Values, Whole Foods Market invested in the Brand two years ago. Mendo prides itself on disrupting casual dining in suburbia with its “Family Friendliest” restaurant design that includes kid’s corners with chalkboard walls, cornhole courts and foosball tables. Mendocino Farms is continuing to expand to Northern California with stores opening in Santana Row (San Jose) and Pruneyard (Campbell) this December! For more information visit www.MendocinoFarms.com.
About TPG Growth
TPG Growth is the middle market and growth equity investment platform of TPG, the global private investment firm. With over $8.3 billion of assets under management, TPG Growth targets investments in a broad range of industries and geographies. TPG Growth has the deep sector knowledge, operational resources, and global experience to drive value creation, and help companies reach their full potential. The firm is backed by the resources of TPG, which has approximately $72 billion of assets under management. For more information, visit www.tpggrowth.com.