Bain Capital has acquired Australian franchise company Retail Zoo, giving selling private equity firm the Riverside Co. its 100th exit. Terms of the deal were not disclosed, but reports indicate the deal's value is around $172 million.
Retail Zoo, headquartered in Chadstone, Victoria, owns the Boost Juice Bars, Salsa's Fresh Mex Grill, Cibo Espresso and Hatch Chicken Shop franchises. The company operates 294 stores in Australia and 100 international stores in nine countries.
Boston private equity firm Bain has previously invested in restaurants, including Domino's Pizza Japan, Dunkin' Brands, Burger King and Bloomin' Brands, the owner of Outback Steakhouse, Fleming's, Bonefish Grill and Carrabba's Italian Grill. This is the firm's second Australian acquisition, following a deal for accounting software group MYOB in 2011.
The Riverside Co., a private equity firm headquartered in New York and Cleveland, sold its majority stake in the company. Riverside bought the stake in 2010, reportedly for about $60 million. Under Riverside's ownership, Retail Zoo bought Cibo Espresso in 2012. The deal marks the firm's 100thexit, following the sale of OnCourse Learning Co.to CIP Capital in March, and Arena to Capvis, also in March. The firm's co-CEOs, Stewart Kohl and Béla Szigethy, were named Mergers & Acquisitions M&A Mid-Market Dealmakers of the Year for 2013.
Nomura Australia was Bain's financial adviser, and UBS, Jones Day, KPMG and Deloitte provided legal advice to Retail Zoo.
Franchises have been attracting multitudes of buyers lately. In May, Sentinel Capital Partners and TriArtisan Capital Partners announced a deal for TGI Fridays. Also in May, Golden Gate Capital agreed to buy restaurant chain Red Lobster for $2.1 billion.