Bain Capital, a prominent private equity firm, is reportedly in advanced negotiations to acquire Sizzling Platter, a leading restaurant franchise operator, for a sum exceeding $1 billion, inclusive of debt. Sources familiar with the transaction disclosed this information on Tuesday.
Sizzling Platter, headquartered in Salt Lake City, Utah, boasts a diverse portfolio of franchise brands, including renowned names like Little Caesars, Jersey Mike’s, Dunkin’, Wingstop, and Jamba. The company has been actively engaged in a sale process for several months, collaborating with investment bankers from UBS and Deutsche Bank.
Industry insiders, who requested anonymity due to the confidential nature of the discussions, revealed that Sizzling Platter anticipates generating approximately $175 million in earnings before interest, taxes, depreciation, and amortization (EBITDA) this year. This substantial financial performance likely makes the company an attractive acquisition target for Bain Capital.
As of the time of reporting, Bain Capital, UBS, and Deutsche Bank have declined to provide official comments on the matter. Similarly, CapitalSpring, the current owner of Sizzling Platter, has not yet responded to inquiries.
Sizzling Platter’s extensive operations encompass over 750 locations across the United States and Mexico, representing a variety of popular franchises such as Red Robin, Cinnabon, Sizzler, and notably, approximately 450 Little Caesars locations. The company’s roots trace back to 1963 when it commenced operations with a single Sizzler restaurant in Utah.
The acquisition pursuit by Bain Capital aligns with the historical trend of private equity firms actively seeking investment opportunities in the restaurant franchise sector. Franchises typically offer a stable revenue stream through royalty fees and present a comparatively lower operational cost structure, making them attractive investments.
This potential acquisition follows other significant transactions in the restaurant industry. Notably, Blackstone’s acquisition of Jersey Mike’s for $8 billion in November underscores the robust appetite for established franchise brands. Furthermore, reports in February indicated that Flynn Group, the world’s largest franchisee operator of restaurants and fitness clubs, was also exploring a potential sale, highlighting the ongoing dynamism within the sector. The potential acquisition of Sizzling Platter by Bain Capital further emphasizes this trend. This strategic move positions Bain to capitalize on the consistent revenue streams and operational efficiencies inherent in the franchise model.
