Palladium Exits Taco Bueno
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Palladium Exits Taco Bueno

taco bueno nf1Palladium Equity Partners has sold TB Corporation, the parent of the Taco Bueno restaurant chain, to TPG Growth.

taco bueno nf2Taco Bueno is a quick service restaurant chain selling Tex-Mex food. The company has 177 restaurants in Texas, Oklahoma, Missouri, Kansas, Arkansas, Louisiana, and Colorado. The company was founded in 1967 and is headquartered north of Dallas in Farmers Branch, TX (www.tacobueno.com).

Palladium acquired Taco Bueno in August 2005 when it had just 139 restaurants. During its term of ownership, Palladium initiated a number of improvements at the company including expanding into the Colorado market; the refresh of over half of the Taco Bueno restaurants; and the introduction of new products.

Marcos Rodriguez nf1“We are very pleased with the outcome we have achieved,” said Marcos Rodriguez, Chairman and CEO of Palladium. “Guided by Ed’s leadership and an excellent management team, Taco Bueno strengthened its brand, expanded its base of passionate customers and built a larger market footprint.  We believe the company is well-positioned to enter its next phase of growth with significant momentum.”

Palladium invests from $50 million to $150 million of equity in companies that have $10 million to $75 million of EBITDA.  Sectors of interest include business services, consumer, food, financial, healthcare, industrial, energy, and media. Palladium has a focus on companies that operate in the US Hispanic market.  Since its founding in 1997, Palladium has invested over $1.5 billion of capital in more than 25 platform investments and completed over 50 add-on acquisitions.  In April 2014, Palladium held a final closing of Palladium Equity Partners IV, LP with $1.1 billion of capital, significantly above the firm’s target. The firm is based in New York (www.palladiumequity.com).

tom alexander nf1Tim Alexander and Brant Cash of Harris Williams (www.harriswilliams.com) advised Palladium. “Taco Bueno has a loyal customer base in the fast-growing Mexican quick service restaurant segment,” said Mr. Alexander, a managing director in Harris Williams’ Consumer Group. “Palladium and the management team have built a strong foundation from which TPG will grow Taco Bueno’s footprint in new and existing markets. We believe Taco Bueno’s management has the ideal partner in TPG Growth, and we are looking forward to the company’s continued success.”

TPG Growth is the middle market and growth equity investment platform of TPG which was founded in 1992 and makes investments throughout North America, Europe, Asia and Australia.  Sectors of interest include industrials, retail, consumer, financial services, travel and entertainment, technology, media and communications, and healthcare.  The firm has offices in San Francisco, Fort Worth, Austin, Dallas, Houston, New York, Beijing, Hong Kong, London, Luxembourg, Melbourne, Moscow, Mumbai, São Paulo, Shanghai, Singapore and Tokyo (www.tpg.com) (www.tpggrowth.com).

Jason Freedman of Ropes & Gray (www.ropesgray.com) advised TPG Growth on this transaction.

© 2015 PEPD • Private Equity’s Leading News Magazine • 12-8-15

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