The Restaurant Company
Perkins Restaurant
& Bakeries
6075 Poplar Avenue - Suite
800
Memphis, TN 38119-4709
Phone: (800) 877-7375
Fax: (901) 766-6482
Castle Harlan Completes
Purchase
Of Perkins Family Restaurants
NEW YORK, September 22,
2005 -- Castle Harlan, Inc., the New York-based private equity
investment firm, announced today it had completed the acquisition of The
Restaurant Company (TRC), the operator and franchisor of 483 family restaurants
under the Perkins Restaurant & Bakery name. The transaction was valued at
approximately $245 million. www.castleharlan.com
The company was purchased by Castle Harlan Partners
IV, L.P., a $1.2 billion investment fund organized and managed by Castle
Harlan. The firm had announced that it had agreed to acquire the company
September 2.
TRC has 152 company-operated restaurants and 331
franchised restaurants in 33 states and five Canadian provinces. The company
also owns Foxtail Foods, which has three manufacturing plants that make pies,
cookies and cookie dough, muffins and batter and other similar products for
Perkins restaurants and third party food-service distributors.
TRC had total revenues over the past 12 months of
approximately $348 million and adjusted earnings before interest, taxes,
depreciation and amortization (EBITDA) of approximately $37.3 million.
The sellers were Don Smith, who had bought an
interest in the company in 1985 and who has now retired as TRC's chairman and
chief executive officer, and BancBoston Ventures. Smith has been succeeded as
chairman and CEO by Joseph Trungale, who had been president and chief operating
officer of the company.
Smith continues to own a minority stake in the
company.
Castle Harlan, founded in 1987, invests in
controlling interests in the buyout and development of middle-market companies
in North America and Europe. Its team of nine managing directors, including its
founders, has completed 45 acquisitions with a total value in excess of $7
billion since the firm's inception. The firm traces its roots to the start of
the institutionalized private-equity business in the late 1960s.
Castle Harlan also invests in Australia, New Zealand
and the Australasian region through its Sydney-based affiliate, CHAMP Private
Equity, which is one of Australia's oldest and largest private equity firms.
Castle Harlan's portfolio companies, which
employ more than 31,000 people, include Ames True Temper, a leading
manufacturer of lawn and garden tools and accessories; Horizon Lines, one of
the largest U.S. container shipping companies, and Advanced Accessory Systems,
the largest manufacturer of automotive roof racks and tow systems in North
America and Europe.
