Sentinel Capital Partners has reached an agreement to acquire Checkers Drive-In Restaurants from Wellspring Capital Management. Wellspring acquired Checker’s in February 2006 for approximately $188 million.
Checkers Drive-In Restaurants develops, owns, operates and franchises approximately 800 Checkers and Rally’s restaurants. Checkers Drive-In Restaurants was founded in1986 in Mobile, AL and Rally’s Drive-In Restaurants was founded in 1985 in Louisville, KT. The two companies merged in 1999. Checkers is headquartered in Tampa, FL (www.checkers.com).
Checkers was offered for sale in 2012 but after failing to find a buyer, Wellspring instead closed on a $160 million recapitalization. The proceeds of the recapitalization were used to refinance the company’s existing debt and to pay its investors a dividend.
Wellspring Capital Management is a middle-market private equity firm that manages more than $3 billion of private equity capital. The firm was founded in 1995 and is based in New York (www.wellspringcapital.com).
Sentinel Capital Partners invests in middle market companies in the United States and Canada in partnership with management. The firm invests in management buyouts, recapitalizations, corporate divestitures, and going-private transactions of businesses with EBITDAs between $7 million and $40 million. Sentinel targets eight industry sectors: aerospace & defense, business services, consumer, distribution, food & restaurants, franchising, healthcare, and industrials. The firm is headquartered in New York (www.sentinelpartners.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 1-27-14