Bain Capital Eyes Sizzling Platter Acquisition in Multi-Billion Dollar Deal
In a move that could shake up the restaurant franchise industry, private equity firm Bain Capital is reportedly in talks to acquire Sizzling Platter, the operator of popular brands like Little Caesars and Jersey Mike’s, for a staggering sum exceeding $1 billion, including debt.
A Portfolio of Well-Known Brands
Sizzling Platter, based in Salt Lake City, Utah, boasts an impressive portfolio of franchises, including doughnut chain Dunkin’, chicken wings chain Wingstop, and juice bar chain Jamba, among others. The company has been working with investment bankers at UBS and Deutsche Bank to facilitate a sale process that has been underway for several months.
Financial Performance
According to sources, Sizzling Platter is expected to generate earnings before interest, taxes, depreciation, and amortization (EBITDA) of approximately $175 million this year. The company’s financial performance has likely attracted the attention of Bain Capital, which has a history of investing in stable, cash-generating businesses.
A Growing Presence in the US and Mexico
Sizzling Platter operates over 750 locations across the US and Mexico, with a significant presence in the Little Caesars franchise, where it manages around 450 locations. The company’s roots date back to 1963, when it launched its first Sizzler location in Utah.
Private Equity Firms and Restaurant Franchises: A Natural Fit
Private equity firms like Bain Capital have long been drawn to restaurant franchises due to their steady royalty fees and relatively low operating costs. This trend is evident in recent deals, such as Blackstone’s $8 billion acquisition of Jersey Mike’s in November. Flynn Group, the world’s largest franchisee operator of restaurants and fitness clubs, is also exploring a sale, according to reports from February.
The Future of Sizzling Platter
While details of the potential deal remain confidential, a successful acquisition by Bain Capital could mark a significant shift in the restaurant franchise landscape. As the industry continues to evolve, one thing is clear: private equity firms will remain key players in shaping its future.
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