Roark Capital Group has signed an agreement to acquire a majority interest in Jimmy John’s Sandwiches, one of the largest and fastest-growing fast-casual restaurant brands in the nation. Jimmy John’s was ranked No. 1 on Entrepreneur Magazine’s 2016 annual Franchise 500® list.
Jimmy John’s has more than 2,500 locations and $2 billion in system-wide sales and has opened more than 200 locations in each of the last five years, with a new-unit pipeline of more than 1,100 locations to be opened over the next several years. The company was founded in 1983 by Jimmy John Liautaud in Charleston, IL. In 1986 the company opened its second store in Macomb, IL and in 1987 opened its third store in Champaign, IL. In 1994, Jimmy John’s began franchising its operations. The company is headquartered in Champaign (www.jimmyjohns.com).
In January 2007, Mr. Liautaud sold a 33% stake in the company to private equity firm Weston Presidio. Upon closing of the transaction with Roark Capital, Weston Presidio will sell its interest in Jimmy John’s and Mr. Liautaud will continue as chairman and remain the single-largest individual shareholder. James North will continue to lead day-to-day operations of the company as its President and Chief Executive Officer.
“We met Jimmy, James and the team when Jimmy John’s had 500 units and that exact same team has grown the business to over 2,500 units today. Over our 10 years together, Jimmy John’s has generated an outstanding return for Weston Presidio. We are incredibly grateful for their exceptional performance, iconic brand, and rockstar team,” said Jeff Mills, a Partner of Weston Presidio.
“Jimmy has built an amazing business with unlimited potential,” said Neal Aronson, Managing Partner of Roark. “It’s a testament to his vision, commitment to quality, and the team’s outstanding execution. We are thrilled to be a part of this iconic brand and look forward to supporting its continued growth.”
Roark Capital Group invests in consumer and business services companies, with a focus on the franchise, food and restaurant, specialty retail, health and wellness, consumer and business services sectors. Roark’s current portfolio company brands include Anytime Fitness, Arby’s, Batteries Plus Bulbs, Corner Bakery, Driven Brands, FOCUS Brands (the owner of Auntie Anne’s Pretzels, Carvel Ice Cream, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s), Hardee’s, Massage Envy, Miller’s Ale House, Orangetheory Fitness, Pet Supermarket, Pet Valu, Waxing the City, and Wingstop. The firm is based in Atlanta (www.roarkcapital.com).
North Point Advisors (www.nptadvisors.com) served as the financial advisor to Jimmy John’s.
© 2016 Private Equity Professional • 9-13-16
