MINNEAPOLIS & NEW YORK--(BUSINESS WIRE)--
a global hospitality and travel company, today announced that it has
entered into a definitive agreement for the sale of TGI Fridays®
Restaurants to Sentinel Capital Partners and TriArtisan Capital
Partners. Financial terms of the transaction were not disclosed. The
transaction is expected to close by July 2014, subject to customary
“We are proud of the Fridays brand and strong marketplace momentum that
has been created over the past nearly four decades,” said Carlson
President and CEO Trudy Rautio. “This transaction is a win for all
parties and we are excited and confident that under Sentinel’s ownership
Fridays will continue to experience significant growth and capitalize on
new opportunities. For Carlson, this transaction frees up resources that
the company can deploy to focus on and accelerate the growth of its
hotel and travel businesses, at a time when significant opportunities
exist in these markets.”
This transaction represents the conclusion of a thorough and exhaustive
strategic alternatives process initiated by Carlson for TGI Fridays in
November of 2013. TGI Fridays will continue to be run by its proven and
well-respected management team, led by President and CEO Nick Shepherd.
The first TGI Fridays restaurant opened in 1965 in New York City,
building a brand known for handcrafted American food and legendary
drinks, served with genuine personal service. Carlson acquired TGI
Fridays in 1975 when the brand had just 12 restaurants. Since that time
TGI Fridays has become a brand loved around the world, today with more
than 900 restaurants in operation globally in 60 countries and reported
system-wide sales of $2.7 billion in 2013. TGI Fridays restaurants
include TGI Fridays, Fridays FrontRow Sports Grill and Fridays American
Bar, and employ over 70,000 people globally.
Sentinel, who will be TGI Fridays’ majority shareholder, has extensive
restaurant and franchising investment experience and a demonstrated
ability to create successful independent businesses through complex
corporate carve outs. Sentinel has completed numerous acquisitions of
both franchisors and franchisees, including Checkers/Rally’s, the
largest franchisor and operator of dual drive-thru hamburger QSRs in the
United States; Newk’s Eatery, a rapidly growing fast-casual concept in
the Southeast United States; Falcon Holdings, the largest franchisee of
Church's Chicken restaurants; Huddle House, a leading franchisor of
family dining restaurants in the Southeast; Massage Envy, the nation’s
largest provider and franchisor of therapeutic massage and spa services;
and Southern California Pizza Company, a 223-unit Pizza Hut franchisee
operating in the greater Los Angeles market.
“We are very excited to partner with TGI Fridays’ outstanding management
team,” said John McCormack, a Sentinel senior partner. “TGI Fridays is
an iconic global brand with a long history of solid performance and a
significant opportunity for future growth.”
Piper Jaffray & Co. served as Carlson’s financial advisor for this
transaction and Locke Lord LLP served as legal counsel.
Kirkland & Ellis LLP served as legal counsel to Sentinel.
Carlson is a global hospitality and travel
company headquartered in Minneapolis, Minn.Carlson Rezidor Hotel Group
includes more than 1,340 hotels in operation and development, including,
Quorvus Collection, Radisson Blu®, Radisson®,
Radisson Red, Park Plaza®; Park Inn® by Radisson
and Country Inns & Suites By CarlsonSM; and a majority
stake in Carlson Wagonlit Travel®, the global leader in
business travel management. Carlson operates in more than 150 countries
and territories and its brands employ more than 100,000 people. http://www.carlson.com
About Sentinel Capital Partners
Sentinel Capital Partners
specializes in buying and building middle market companies in the United
States and Canada in partnership with management. Sentinel targets
aerospace and defense, business services, consumer, distribution, food
and restaurants, franchising, healthcare, and industrial businesses.
Sentinel invests in management buyouts, recapitalizations, corporate
divestitures, and going-private transactions of established businesses.
Sentinel also invests in special situations, including balance sheet
restructurings and operational turnarounds. For more information about
Sentinel, visit www.sentinelpartners.com.
About TriArtisan Capital Partners
Partners is the merchant banking arm of Morgan Joseph TriArtisan LLC.
TriArtisan makes investments in market leading companies in partnership
with accomplished management, leading private equity funds and
institutional limited partners.
About TGI Fridays
As the original casual dining bar and
grill, TGI Fridays offers authentic American food and legendary drinks,
served with genuine personal service. Bringing people together to
socialize and celebrate the freeing and liberating spirit of “Friday”
was the concept’s founding premise, from which the brand promise “In
Here, It’s Always Friday” was born. To share that social Fridays
experience all over the world, TGI Fridays proudly serves guests with
over 900 restaurants in more than 60 countries. Making every day feel
like a Friday wouldn't be possible without creating a place where
friends feel free to get together. That's why TGI Fridays takes pride in
its nearly 8,000 skilled and knowledgeable bartenders, all of whom for
the past twenty years have competed annually for the title of the
"World's Greatest TGI Fridays Bartender."
The Fridays guest recognition program, Give Me More Stripes®,
gives Fridays’ closest friends exclusive insider rewards, special event
access, and menu sneak peeks, and is not only the first loyalty program
of its kind in the industry, but one of the most progressive.
TGI Fridays believes in having a good time, but also in the importance
of drinking responsibly. Additionally, its Responsible Business Program
is focused on positively impacting the communities it serves. For more
information, visit www.fridays.com.
For Sentinel Capital Partners / Tri-Artisan Capital:
Roland Tomforde, +1 212-232-2356
Gardeen, +1 763-212-8129
Eric Bonach, +1 310-309-6613