Minneapolis-based Carlson Restaurants has entered into a definitive agreement for the sale of TGI Fridays Restaurants to Sentinel Capital Partners and TriArtisan Capital Partners. The transaction is expected to close by July 2014. Financial details were not disclosed. “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,” said Carlson President, CEO Trudy Rautio. “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.” The transaction represents the conclusion of a thorough strategic alternatives process initiated by Carlson for TGI Fridays in November of 2013. The established management team, led by President, CEO Nick Shepherd will continue to operate the chain. Currently there are more than 900 restaurants operating under the TGI Fridays, Fridays FrontRow Sports Grill and Fridays American Bar banners in 60 countries. In 2013, the company recorded system-wide sales of $2.7-billion. Sentinel Capital Partners, who will be TGI Fridays’ majority shareholder,specializes in buying and building middle market companies in the United States and Canada in partnership with management. It has extensive restaurant and franchising investment experience having completed numerous acquisitions of both franchisors and franchisees, including Checkers/Rally’s, Newk’s Eatery, Falcon Holdings, the largest franchisee of Church’s Chicken restaurants, Huddle House and Southern California Pizza Company, a 223-unit Pizza Hut franchisee operating in the greater Los Angeles market. TriArtisan Capital 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.
TGI Friday’s Restaurants – (972/662-5400 www.tgifridays.com)
Carlson – (763/212-5000 www.carlson.com)
Sentinel Capital Partners – (212/688-3100 www.sentinelpartners.com)
Morgan Joseph TriArtisan LLC – (212/218-3700 www.mjtagroup.com)