Charlesbank, Grotech and Leonard Green Acquire Mexican Restaurant Chain Del Taco.BOSTON -- Charlesbank Capital Partners has announced the acquisition of Del Taco Del Taco is a chain of North American fast-food restaurants specializing in Mexican-style offerings as well as American foods such as burgers, fries and shakes. The first Del Taco restaurant was founded in Yermo, California in 1961 by Ed Hackbarth and David Jameson. , the country's second-largest Mexican quick-service restaurant chain, headquartered in Lake Forest, CA. Charlesbank co-led the transaction along with Grotech Capital Group and Leonard Green & Partners. The investment was made through Sagittarius Brands, which is the Nashville-based parent company for Captain's D's Seafood. Senior debt financing Debt Financing When a firm raises money for working capital or capital expenditures by selling bonds, bills, or notes to individual and/or institutional investors. In return for lending the money, the individuals or institutions become creditors and receive a promise to repay was underwritten by JP Morgan and Credit Suisse First Boston Credit Suisse First Boston was originally the trading name of the Financière Crédit Suisse-First Boston, a London-based 50-50 investment banking joint venture formed in 1978 between the First Boston Corporation and Credit Suisse. , with Goldman Sachs The Goldman Sachs Group, Inc., or simply Goldman Sachs (NYSE: GS) is one of the world's largest global investment banks. Goldman Sachs was founded in 1869, and is headquartered in the Lower Manhattan area of New York City at 85 Broad Street. providing the subordinated debt Subordinated Debt A loan (or security) that ranks below other loans (or securities) with regard to claims on assets or earnings. Also known as "junior security" or "subordinated loan". financing. Terms of the transaction were not disclosed. Founded in 1964, Del Taco has more than 460 quick-service restaurants in 13 states, primarily in the Western US. The menu offers Mexican items such as burritos, tacos, and quesadillas, as well as American fare such as burgers and fries. The Del Taco acquisition gives Sagittarius Brands more than 1,000 units across the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and system-wide sales in excess of $1 billion annually. Sagittarius Brands is led by veteran chain restaurant operators Sid Feltenstein and Ron Powell. Key members of senior management at Del Taco, including Shirlene Lopez, Don Stoops and Ron Petty, have all agreed to stay with the combined company. "Del Taco has an outstanding management team that has led the brand to an exceptional track record of financial performance, including 15 years of consecutive same-store sales growth," said Andrew Janower, managing director, Charlesbank Capital Partners. "We are pleased to add Del Taco to the Sagittarius family as we build a strong multi-brand quick-service restaurant company." "This acquisition is the perfect marriage of a company that has pioneered the seafood casual dining category with restaurants primarily in the South and Southeast and a company that is a pioneer in the Mexican food category mainly in the Western states. There will be significant personal growth opportunities for employees and franchisees of both restaurant systems and greater combined purchasing power Purchasing Power 1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase. 2. for the emerging multi-brand organization, which will find its way to each concept's bottom line," said Ron Powell, Sagittarius president and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . With offices in Boston and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Charlesbank Capital Partners is a middle-market private equity investment firm managing more than $1 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings, typically investing $25 million to $75 million per transaction in companies with enterprise values of $50 million to $750 million. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantage and excellent prospects for growth. Charlesbank is currently investing through Charlesbank Equity Fund VI, a $900 million fund. For more information, visit www.charlesbank.com. For more information on Captain D's, visit www.captainds.com. For more information on Del Taco, visit www.deltaco.com. |
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