Newk’s offers a menu of made-from-scratch sandwiches, soups, salads, and pizzas. The company was founded in 2004 by Chris Newcomb (CEO), Don Newcomb (Chairman) and Debra Bryson (Vice President) as a locally owned sandwich shop in Oxford, Mississippi. Today, the Newk’s Eatery system consists of 67 restaurants located across the Southeast. Newk’s is headquartered in Jackson, MS (www.newks.com).
“We are very pleased to be partnering with Newk’s strong leadership team who are pioneers in the fast casual dining market,” said James Coady, a Sentinel partner. “Newk’s is well positioned for accelerating its growth and is very well aligned with the emerging fast casual trend in the restaurant industry.”
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).
“Sentinel is a perfect strategic partner whose deep experience and success in supporting high growth restaurant and franchising businesses will allow Newk’s to realize its full potential,” said Chris Newcomb, CEO and co-founder.
In March 2014, Sentinel acquired Checkers Drive-In Restaurants from Wellspring Capital Management. 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).
Investment bank Arlington Capital Advisors served as financial advisor to Newk’s. Arlington has offices in Birmingham, AL and Atlanta, GA (www.arlingtoncapitaladvisors.com).
© 2014 PEPD • Private Equity’s Leading News Magazine • 3-25-14