retail food

Marlin Invests in My Fit Foods

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Marlin Equity Partners has made an investment in My Fit Foods, a grab-and‐go specialty retailer of health‐oriented prepared meals.  Investing alongside existing equity partner, TSG Consumer Partners, this investment will be used by the company to pursue the development of new retail locations.

My Fit Foods is a vertically integrated maker of breakfast, lunch, dinner and snack options that are developed by in-house chefs to meet defined nutritional characteristics that help consumers achieve their health and fitness goals. The company currently has 54 retail stores in California, Oklahoma, Texas, Arizona and Illinois.  My Fit Foods was founded in 2006 and is headquartered in Austin (www.myfitfoods.com).

“My Fit Foods is uniquely positioned to meet the rapidly growing consumer demand for fresh, healthy and convenient alternatives to traditional meal options,” said George Kase, partner at Marlin Equity Partners. “We are delighted to partner with a talented management team to help accelerate the next phase of My Fit Foods’ growth and are committed to meeting and exceeding the nutritional and on-the go needs of their everyday consumer.”

Marlin Equity Partners invests in businesses that have revenues of $20 million to $1 billion and that are in the process of undergoing varying degrees of operational, financial or market-driven change. Sectors of interest include technology, healthcare, consumer products and services, business services, manufacturing, aerospace & defense, distribution & logistics, and media. The firm has $3 billion of capital under management and is headquartered in Los Angeles with an additional office in London (www.marlinequity.com).

“To support the rapid expansion of our business, My Fit Foods and TSG sought a partner who would complement our collective skills and resources allowing us to execute on our business development and growth plans,” said David Goronkin, CEO of My Fit Foods.

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 improving operations. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household and apparel & accessories sectors. The firm has $2.9 billion in equity capital under management and is headquartered in San Francisco (www.tsgconsumer.com).

© 2015 PEPD • Private Equity’s Leading News Magazine • 7-30-15

Apollo Acquires Peter Piper Pizza

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CEC Entertainment, the operator of 577 Chuck E. Cheese pizza restaurants and a portfolio company of Apollo Global Management, has acquired Peter Piper Pizza, a pizza and entertainment restaurant chain operating 32 company-owned locations and 115 franchises in the southwestern US and Mexico. Peter Piper Pizza was a portfolio company of ACON Investments.

Peter Piper, acquired by ACON in December 2006, is a dine-in pizza and entertainment restaurant chain operating in the Southwestern US and Mexico.  The company offers a combination of high quality, reasonably priced pizza in a fun, entertainment-oriented environment that appeals to children and adults of all ages. The company’s revenues come from (a) food and beverage sales, including pizza, salads, appetizers and desserts; (b) games, including interactive skill games, redemption games and video attractions; and (c) royalties from franchisees.  According to Pizza Magazine’s “Pizza Power Report 2009,” Peter Piper Pizza ranked #3 in the top 50 US pizzerias in sales per unit.

Peter Piper operates 147 corporate and franchise-owned restaurants.  The company leases and operates 32 Peter Piper Pizza restaurants in markets in the Southwestern US that include a significant Hispanic presence, including the greater Phoenix metropolitan area, and Albuquerque. The company also franchises 67 similarly branded restaurants in Arizona, California, New Mexico and Texas, and 48 restaurants in the Republic of Mexico. Peter Piper was founded in 1973 by Tony Cavolo and is based in Phoenix (www.peterpiperpizza.com).

CEC Entertainment and its franchisees operate 577 Chuck E. Cheese’s stores located in 47 states and 10 foreign countries. Currently, 522 locations in the United States and Canada are owned and operated by the company. Each Chuck E. Cheese store features musical and comic robotic entertainment, games, rides and play areas, as well as a variety of dining options including pizza, sandwiches, wings, appetizers, a salad bar and desserts. CEC Entertainment is headquartered in Irving, TX (www.chuckecheese.com).

Apollo Global Management acquired CEC Entertainment in January 2014 for approximately $1.3 billion, including the assumption of the company’s outstanding debt.

Apollo’s strategy during its ownership of CEC is to expand the Chuck E. Cheese and Peter Piper brands across the US and internationally.  “This is a great opportunity to welcome another established brand into our proven portfolio and, by extending our portfolio, further secure CEC as the leader in family fun,” said Tom Leverton, CEO of CEC.  “This transaction complements our strategy of accelerating Chuck E. Cheese’s growth nationally and globally.”

The Peter Piper chain has a strong presence in Hispanic markets, a market that Apollo considers very attractive.  According to Mr. Leverton, “Peter Piper has already begun new brand strategies in recent years, including a heightened focus on technology and stronger engagement with the Hispanic community, one of the fastest-growing segments of the US population. We are eager to build on this foundation and strengthen Peter Piper’s brand by leveraging CEC’s scale, expertise and resources.”

ACON invests from $20 million to $150 million of equity capital in middle-market companies. The firm pursues a theme-based investment strategy by focusing on industries and businesses at key inflection points in their development and pursues these opportunities in partnership with established management teams. The firm was founded in 1996 and has offices in Washington, DC; Los Angeles; Mexico City; Sao Paulo; and Bogota (www.aconinvestments.com).

“I would like to thank ACON for their support over the last few years. ACON’s leadership was essential in revitalizing our brand and improving our market position,” said Charles Bruce, President and CEO of Peter Piper.

North Point Advisors (www.nptadvisors.com), a San Francisco based investment bank, acted as the exclusive financial advisor to Peter Piper.

2014 PEPD • Private Equity’s Leading News Magazine • 10-17-14