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TriArtisan tasting potential deal for PF Chang: Bloomberg
Posted on Tuesday, 08 January 2019 10:42
Private equity group TriArtisan Capital Advisors has entered into exclusive talks to chow down on PF Chang, in a deal that could value the US-based Chinese food restaurant group at up to USD 700.00 million, people familiar with the matter told Bloomberg.
The eatery is currently controlled by Centerbridge Partners, a rival buyout group to the potential acquiror, which paid USD 1.10 billion for the target to take it private in 2012.
PF Chang was listed on Nasdaq prior to this deal.
Centerbridge put PF Chang on the menu back in June when the private equity owner said it was exploring a possible disposal of the Asian restaurant chain and had hired Bank of America Merrill Lynch and Barclays to help review options.
TriArtisan is now in talks with lenders about gaining financing for a potential deal, Bloomberg’s sources noted, asking not to be identified as the situation is private.
According to these insiders, a final decision is yet to be made and there can be no guarantee of a transaction taking place.
PF Chang is billed as the market leader in full-service Asian restaurants, operating 220 locations in the US and franchising a further 93 eateries across 24 countries internationally.
The group successfully split into two operational businesses in 2017, one being the PF Chang Bistro and the other Pei Wei Asian Diner.
TriArtisan is based in New York and is focused on investments in companies that have earnings before interest, taxes, depreciation and amortisation of between USD 25.00 million and USD 300.00 million.
Back in 2014, the group took part in the USD 900.00 million takeover of restaurant group TGI Friday’s in partnership with Sentinel Capital Partners.
Representatives for TriArtisan, PF Chang and Centerbridge did not respond to Bloomberg’s requests for comment.
According to Zephyr, the M&A database published by Bureau van Dijk, the global food service and drinking places sector was targeted in 907 announced deals worth an aggregate USD 24.14 billion in 2018.
Despite this representing a decline from 925 transactions valued at a combined USD 32.01 billion in 2017, there were four acquisitions or minority stake investments that were worth over USD 1.00 billion last year.
The industry’s largest deal of 2018 involved the Coca-Cola Company buying UK coffee chain Costa for GBP 3.90 billion.
Sonic, PAM Group, McDonald’s in Japan and Bojangles, among others, were also targeted last year.
© Zephus Ltd