mexican restaurant

L Catterton Buys Uncle Julio’s

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L Catterton has acquired Uncle Julio’s, a casual Mexican restaurant chain, from J.H. Whitney which acquired the company in September 2011.

Uncle Julio’s is an upscale Mexican concept known for its made-from-scratch menu and handcrafted margaritas. The restaurant’s menu includes marinated and mesquite grilled beef and chicken fajitas, bacons, pico de gallos, scallops and tilapias, honey chipotle salmons, fajitas al carbons, cajetas, carne asadas, jumbo shrimps, shrimp brochettes, and chips and salsas. Uncle Julio’s operates 29 restaurants across seven states including Texas, Virginia, Maryland, Illinois, Florida, Georgia, and Tennessee. The first Uncle Julio’s opened in Dallas in November 1986. The company is led by Tom Vogel, President and Chief Executive Officer, and is headquartered in Irving, TX (www.unclejulios.com).

“We are impressed by L Catterton’s unparalleled experience growing leading restaurant brands and deep understanding of consumer food and beverage trends and are excited to partner with their dedicated team,” said Mr. Vogel. “L Catterton appreciates our commitment to providing our guests with high-quality, made-from-scratch Mexican food and exceptional customer service. Ultimately, L Catterton’s willingness to invest in the long-term success of our brand and their alignment with our values makes them the perfect fit to help us execute our growth strategy.”

According to L Catterton, Uncle Julio’s has a history of high average unit volumes and consistent performance and the firm plans to expand the chain through new restaurants in both existing and new markets.

L Catterton invests from $50 million to $400 million of capital in consumer-focused companies. Areas of specific interest include food and beverage, retail and restaurants, consumer products and services, consumer health, and media and marketing services.  L Catterton was founded in 1989 and has raised over $14 billion of equity capital across six funds. The firm has past experience in the restaurant space and has invested in Hopdoddy, P.F. Chang’s, Anthony’s Coal Fired Pizza, Chopt Creative Salad Company, Cheddar’s Scratch Kitchen, PIADA, First Watch and Velvet Taco. L Catterton has 17 offices globally and is headquartered in Greenwich, CT (www.lcatterton.com).

“Uncle Julio’s is a unique and authentic upscale dining experience with an on-trend brand and broad consumer appeal,” said Andrew Taub, a Managing Partner at L Catterton. “Uncle Julio’s is a leader in the growing polished casual Mexican restaurant space, and its differentiated concept resonates across a variety of occasions and demographics. We are delighted to partner with Tom and the company’s talented management team to accelerate their expansion.”

During the ownership of Uncle Julio’s by J.H. Whitney, the company grew from 16 company owned restaurants in five states to today’s tally of 29 restaurants across seven states. J.H. Whitney invests in small and middle market companies that are active in the consumer, healthcare, specialty manufacturing, and business services sectors. The firm was founded in 1946 and is based in New Canaan, CT (www.whitney.com).

© 2017 Private Equity Professional | October 13, 2017

Z Capital Ups Investment in Real Mex

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Z Capital Partners has acquired an equity stake of a non-strategic minority holder and increased its equity ownership of Real Mex Restaurants, a full service, casual dining Mexican restaurant chain. As a result of this transaction, Z Capital is now the largest shareholder of Real Mex.

Concurrent with this transaction, Real Mex has announced that James Zenni, Founder, President and Chief Executive Officer of Z Capital, has been named Chairman of the Real Mex Board of Directors.

“We are thrilled to become the largest shareholder of Real Mex,” said Mr. Zenni. “Since Charly Robinson was appointed as CEO, Real Mex has improved operations and efficiencies and the management team is laser focused on the current turnaround strategy to drive profitability and enhance customer relationships. We remain dedicated to supporting Real Mex and are confident that, with Charly and his talented management team, the company is positioned for future growth and success.”

Real Mex Restaurants is the largest full-service, casual dining Mexican restaurant chain operator in the United States with 121 company-owned and operated restaurants, as well as 14 franchised restaurants. Brands include El Torito Restaurants, Acapulco Mexican Restaurants, Chevys Fresh Mex Restaurants, El Torito Grill Restaurants, Las Brisas Restaurant in Laguna Beach, Sinigual Restaurant in New York City, Who Song and Larry’s in Vancouver, WA, and El Paso Cantina in Torrance, CA. The company’s Real Mex Foods division is a manufacturer of foodservice and private label products in addition to co-packing for other manufacturers. Real Mex is headquartered in Cypress, CA (www.realmexrestaurants.com).

“This is an exciting transaction for all of us at Real Mex,” said Charly Robinson, President and CEO of Real Mex. “Z Capital has been a dedicated partner since their initial investment in the company and is deeply committed to the company’s vision to revitalize the Real Mex brands. With the support of a seasoned financial sponsor we are continuing to develop our brands and expand into new markets.”

Z Capital makes control investments in middle-market distressed companies, operational turnarounds and special situations. The firm targets companies with an enterprise value of less than $1 billion or EBITDA of less than $100 million. Sectors of interest include consumer products, steel, steel processors, agricultural, gaming, leisure, real estate, manufacturing, specialty services and automotive. Z Capital Partners was formed by Mr. Zenni, the former President, co-owner and co-founder of Black Diamond Capital Management. Mr. Zenni co-managed the portfolios of Black Diamond from its inception in 1995 to approximately $9 billion in assets under management and divested his fifty percent equity ownership interest in Black Diamond in October 2006. Z Capital is based in Lake Forest, IL (near Chicago) and has an additional office in New York (www.zcap.net).

© 2013 PEPD • Private Equity’s Leading News Magazine • 11-12-13