Restaurant mergers — like the rest of the M&A market — have been slow in 2012, according to a recent article by PEHUB. Numerous industry experts indicate this year will likely not be as strong as 2011 for mergers in the space.
2011 was the second year in a row with major deals, including the acquisitions of California Pizza Kitchen and Il Fornaio, as well as Brentwood Associates‘ acquisition of K-MAC holdings, one of the largest franchisees of Taco Bell in the U.S.
Regardless, several restaurant chains are considering strategic options. Miami-based Benihana said on March 13 that it was looking at several options, including a sale.
Brentwood Associates, a leading consumer-focused private equity investment firm, recently announced it has completed a second recapitalization of its portfolio company, The Teaching Company. The recapitalization is the second in the last twelve months and was financed through a $170 million credit facility.
Brentwood has now returned more than its original investments without reducing its ownership stake, as reported by CNN Money.
“The Teaching Company has continued its impressive financial performance despite a challenging macroeconomic environment, and this year is on track to more than triple its revenue and profitability since our original acquisition in 2006,” said Eric Reiter, partner at Brentwood Associates.
Ares Capital Corp. provided the incremental financing for the recap in the form of a delayed draw term loan, reported peHUB.