A Little Caesars franchisee is currently in the midst of serious talks with Bain Capital for a $1 billion acquisition, which is one of the largest deals of its kind.
Reuters reports that Sizzling Platter, the operator of Little Caesars and Jersey Mike’s restaurant chains, is being negotiated by Bain Capital to be acquired for over $1 billion, including debt.
Investment bankers at UBS and Deutsche Bank have been assisting the Salt Lake City, Utah-based company, which also runs franchises such as the doughnut chain Dunkin’, the chicken wing chain Wingstop, and the juice bar chain Jamba, with a sale process for a number of months.
According to the sources, who asked not to be named because the conversations are private, Sizzling Platter anticipates making around $175 million this year before interest, taxes, depreciation, and amortization. The company has over 750 locations across the United States and Mexico for franchises like Red Robin, Cinnabon, and Sizzler. It began operations in 1963 with one Sizzler location in Utah, and it runs roughly 450 locations across the United States and Mexico for Little Caesars.
Little Caesars is the Latest Private Equity Food Chain Deal
Little Caesars is just the latest food chain to be considered for acquisition in a private equity deal. Last month, Jersey Mike’s secured a $8 billion private equity deal with Blackstone.
Since earlier this year, Blackstone and the Manasquan, New Jersey-based sandwich shop have been engaged in sporadic merger talks. Franchises, which can benefit from a brand’s growth without requiring a significant upfront investment, have a history of being funded by Blackstone.
The company’s deal with franchiser Hilton Hotels was its most profitable private equity real estate endeavor to date. Additionally, the business owns the SERVPRO franchise for cleaning and emergency restoration services as well as the coffee brand 7Brew. In April, Blackstone agreed to buy the smoothie business Tropical Smoothie Cafe.
On Tuesday, November 19, Jersey Mike’s purchase was officially disclosed in a press statement from Blackstone. As part of the deal, Jersey Mike’s founder and CEO, Peter Cancro, will continue to manage the business and retain a sizable stake in the company he founded.
