Levine Leichtman Capital Partners Sells Tropical Smoothie Cafe
24 Abril 2024 - 4:16PM
Business Wire
Levine Leichtman Capital Partners (“LLCP”), a Los Angeles-based
private equity firm, announced today that it has entered into a
definitive agreement to sell its portfolio company TSC
Intermediate, Inc. (“Tropical Smoothie Cafe” or the “Company”) to
private equity funds managed by Blackstone (“Blackstone”).
Tropical Smoothie Cafe is a leading franchisor of fast casual
restaurants built on a mission to Inspire Better® with more than
1,400 locations across 44 states. The Company’s cafes offer a menu
focused on inspiring a healthier lifestyle and includes
“better-for-you” smoothies, wraps, sandwiches, bowls, salads, and
flatbreads. With a menu mix of food and smoothies, the Company’s
units generate attractive average unit volumes and capitalize on
multiple dayparts, including breakfast, lunch, dinner, dessert, and
snacks. The Company was founded in 1997 and is headquartered in
Atlanta, Georgia.
Matthew Frankel, Managing Partner of LLCP, said, “Charles Watson
and the Tropical Smoothie Cafe team have been terrific partners
during a period of rapid growth with unit count nearly doubling
since LLCP partnered with management to purchase the Company.
Tropical Smoothie Cafe has been a phenomenal investment for LLCP
given the Company’s robust franchise development activity and
exceptional same-store sales growth. The accelerated growth we
achieved working alongside their management team was driven by
several key value creation initiatives, including accelerated unit
signings and openings; strong digital sales growth; menu
innovation; expansion of the management team; an increase in the
proportion in higher AUV drive-thru units; supply chain
improvements; and completing several highly strategic area
developer buybacks. We are grateful for the partnership we had with
the Tropical Smoothie Cafe team and wish the Company, their
employees, and franchisees all the best in their next chapter of
growth with Blackstone.”
Charles Watson, CEO of Tropical Smoothie Cafe, commented, “It
has been a pleasure partnering with the LLCP team through this time
of unprecedented growth, and we would like to thank them for their
strategic insights and close relationship with our team over the
years, and valuable contributions to our success. LLCP’s deep
expertise in franchising combined with their management-centric
approach made for the perfect partner in scaling our business. We
have appreciated LLCP’s support in advancing our strategic
initiatives and have benefitted greatly from the
collaboration.”
Baird served as the lead financial advisor, with support from
North Point and BofA Securities, and Kirkland & Ellis LLP
served as legal counsel to Tropical Smoothie Cafe in connection
with the sale.
About Levine Leichtman Capital Partners
Levine Leichtman Capital Partners, LLC is a middle-market
private equity firm with a 40-year track record of investing across
various targeted sectors, including Franchising & Multi-unit,
Business Services, Education & Training and Engineered Products
& Manufacturing. LLCP utilizes a differentiated Structured
Private Equity investment strategy, combining debt and equity
capital investments in portfolio companies. LLCP believes that by
investing in a combination of debt and equity securities, it offers
management teams growth capital in a highly tailored, flexible
investment structure that can be a more attractive alternative than
traditional private equity.
LLCP’s global team of dedicated investment professionals is led
by 10 partners who have worked at LLCP for an average of 19 years.
Since inception, LLCP has managed approximately $14.4 billion of
institutional capital across 15 investment funds and has invested
in over 100 portfolio companies. LLCP currently manages $9.6
billion of assets and has offices in Los Angeles, New York,
Chicago, Miami, London, Stockholm, The Hague and Frankfurt.
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Mark Semer/Alex Jeffrey Gasthalter & Co. (212) 257 4170
llcp@gasthalter.com