Darden Restaurants has completed the acquisition of Yard House USA, for $585 million in an all-cash transaction, from private equity firm TSG Consumer Partners.
Yard House, which launched its first restaurant in 1996, offers contemporary American cuisine with a wide range of draft beers and other beverages. The brand has grown to 40 restaurants across 13 states. The company is based in Irvine, CA (www.yardhouse.com).
Darden Restaurants (NYSE: DRI) owns and operates nearly 2,000 restaurants that generate $8 billion in annual sales. Brands include Red Lobster, Olive Garden, LongHorn Steakhouse, The Capital Grille, Bahama Breeze, Seasons 52, and Eddie V’s. The company is based in Orlando, FL (www.darden.com).
TSG Consumer Partners makes control and non-control investments of $15 million to $100 million in companies with EBITDAs of $3 million to $50 million where there is an opportunity to enhance value by extending brand, expanding distribution and/or improving operations. Since its inception in 1987, TSG’s branded consumer investment strategy has achieved cumulative cash-on-cash returns of approximately 60 percent annually. TSG’s investments over the years include Famous Amos Chocolate Chip Cookies, Terra Chips, Mauna Loa macadamia nuts, Glaceau vitaminwater, Smart Balance Foods, and PureOlogy hair care, amongst others. The firm is located in Located in San Francisco, CA (www.tsgconsumer.com).
© 2012 PEPD • Private Equity’s Leading News Magazine • 8-30-12
