PNC Mezzanine Capital has made a $10.5 million subordinated debt investment to support growth initiatives of Grimaldi’s Pizzeria. The new capital will be used to open locations in new and existing markets, both domestically and internationally.
Grimaldi’s Pizzeria is an American pizzeria chain that is renowned for its coal-fired brick oven cooked pizzas. Grimaldi’s does not sell slices, only whole pies, and also sells calzones, salads and house-made cheesecakes. Since its founding in 1990, Grimaldi’s has expanded from its original, historic location under the Brooklyn Bridge, to nearly 50 locations in 14 states. The company is headquartered in Scottsdale, AZ (www.grimaldispizzeria.com).
Grimaldi’s was founded by Patsy Grimaldi in 1990 and Frank Ciolli, one of the first customers at the Brooklyn restaurant, purchased the Grimaldi’s Pizza name for $500,000 in 1998.
“We enjoyed working with PNC throughout the diligence process and are excited to leverage their investment experience to assist us in growing our company,” said Joe Ciolli, CEO of Grimaldi’s Pizzeria and the son of Frank Ciolli.
PNC Mezzanine was founded in 1989 and has made 151 investments in 83 companies, in support of 283 transactions. Sectors of interest include niche manufacturing, value added distribution, business services, and consumer services. Investments will typically take the form of second lien debt, subordinated debt or subordinated debt with warrants, and preferred stock with a dividend. Equity investments will be considered in conjunction with a mezzanine investment. The group is based in Pittsburgh (www.pncmezzanine.com).
Grimaldi’s Pizzeria has yet to open restaurant anywhere in Pennsylvania. Perhaps that will change soon.
© 2017 Private Equity Professional | April 28, 2017