Oak Investment Partners and Catterton Partners Complete Acquisition of Cheddar's Restaurant Holdings Inc.
August 28 2006 - 8:30AM
PR Newswire (US)
GREENWICH, Conn. and WESTPORT, Conn., Aug. 28 /PRNewswire/ --
Catterton Partners, one of the nation's foremost consumer-focused
middle-market private equity firms, and Oak Investment Partners, a
multi-stage venture capital firm, today announced the acquisition
of Cheddar's Holding Corp. from Brazos Restaurant Holding Company,
L.L.C., management, and other private investors. Terms of the
transaction were not disclosed. With system-wide sales of over $245
million, Cheddar's is one of the largest regional casual dining
restaurant chains in the U.S. Cheddar's was founded in 1978 by
Aubrey G. Good and Douglas H. Rogers and currently has 55
restaurants in 15 states. Approximately 50 percent of Cheddar's
restaurants are owned by the Company, with the remainder being
owned by Cheddar's franchise partners. "I am confident that our
partnership with Cheddar's current management team will flourish
and that we will continue Cheddar's great tradition of offering its
customers high-quality food at an attractive value, with fast and
attentive service," said Jerry Gallagher, General Partner of Oak
Investment Partners. "We are pleased with the successful completion
of this transaction," said Frank Vest, a Partner at Catterton
Partners. "Working with Oak Investment Partners, we plan to utilize
our expertise in the restaurant concept business to expand
Cheddar's national reach. We look forward to supporting the future
development of this industry-leading, casual dining restaurant
chain and continuing to support the strong relationships that
Cheddar's has built with its vendor, franchise, and employee
partners." Doug Rogers, Cheddar's president, and Greg Good,
Cheddar's chief operating officer, will continue to serve in their
roles under the Company's new structure. Both Mr. Rogers and Mr.
Good have elected to reinvest a portion of their equity into the
acquisition due to their confidence in the forward-going business
plan that that they have developed along with Catterton and Oak. As
equal partners, Oak and Catterton will each own 50% of the Company.
"We are delighted to begin our partnership with Catterton Partners
and Oak Investment Partners," said Mr. Rogers. "All of us at
Cheddar's are very impressed with both firms' history of
successfully supporting rapidly growing restaurant and retail
companies. With their strategic and financial support, we are
confident that Oak and Catterton will continue the growth and
development of Cheddar's while staying true to its original core
principles." "Catterton and Oak have extensive experience working
as a team with superior management teams to grow innovative
restaurant concepts, including P.F. Chang's China Bistro, Baja
Fresh Mexican Grill, Caribou Coffee and La Madeleine French Bakery
Cafe," said Mr. Good. "We are confident that the strategic
insights, expertise and capital of our new partners will help
position Cheddar's for continued success. There are no better
partners for us to be associated with as we move forward." About
Cheddar's Casual Cafe Headquartered in Dallas, TX, Cheddar's is a
leading multi-concept "classic American" casual dining restaurant
company with 55 system-wide stores in 15 states, having collective
revenues of over $245 million. Cheddar's was founded in 1978 by
Aubrey G. Good and Douglas H. Rogers, and they were joined in 1991
by Aubrey's son, Gregory W. Good. To-date the company has opened 25
company stores, including 23 Cheddar's Casual Cafes and 2 Fish
Daddy's Grill Houses, and 30 franchise stores, operated by 11
franchisees. About Oak Investment Partners Established in 1978 and
with over $8.4 billion of committed capital, Oak Investment
Partners is a venture capital firm with a strong track record as a
multi-stage investor. Oak's investment strategy focuses on growth
opportunities in enterprise application and infrastructure
software, outsourced services, communications equipment and
services, advanced semiconductors, financial information
technology, healthcare technologies, and retail. With offices in
Westport, CT, Minneapolis, MN, and Palo Alto, CA, Oak concentrates
on building long-term relationships with experienced management
teams to develop successful companies that deliver consistent
performance over time. Oak has invested in more than 435 companies
since its inception and, in addition to their co-investments with
Catterton Partners, their retail and restaurant investments have
included companies such as Dick's Sporting goods, Filene's
Basement, Jamba Juice, Lucy Activewear, Office Depot, PETsMART,
Potbelly Sandwich Works, Ulta Salons, and Whole Foods. More
information about the firm can be found at http://www.oakvc.com/.
About Catterton Partners With more than $2 billion under
management, Catterton Partners is a leading private equity firm in
the U.S. focused exclusively on the consumer industry. Since its
founding in 1990, Catterton has leveraged its investment capital,
strategic and operating skills, and network of industry contacts to
establish one of the strongest investment track records in the
consumer industry. Catterton considers investments across a number
of targeted consumer industry "verticals": Food and Beverage,
Retail and Restaurants, Consumer Products and Services, and Media
and Marketing Services. Catterton's unique combination of
value-added resources has resulted in the creation of numerous
market leading companies. In addition to their co-investments with
Oak Investment Partners, Catterton has led investments in companies
such as Build-A-Bear Workshop, First Watch Restaurants, Frederic
Fekkai, Kettle Foods, Farley's and Sathers Candy Co., Titan
Outdoor, Pharmaceuticals Holdings, Inc., Gold Coast Beverage
Distributors, Odwalla, Inc., and Wellness Pet Food. More
information about the firm can be found at
http://www.cpequity.com/. DATASOURCE: Catterton Partners CONTACT:
Eric Brielmann or Andrea Salas, both of Joele Frank, Wilkinson,
Brimmer Katcher, +1-212-355-4449 Web site: http://www.cpequity.com/
http://www.oakvc.com/
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