Sentinel Capital Partners Sells Fazoli's

Exit Marks Another Successful Restaurant Franchisor Investment

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Dec 16, 2021, 08:37 ET

NEW YORK, Dec. 16, 2021 /PRNewswire/ -- Sentinel Capital Partners, a private equity firm that invests in promising midmarket companies, today announced the sale of portfolio company Fazoli's Group, Inc. to strategic buyer FAT Brands for an enterprise value of $130 million.

Founded in 1988 and headquartered in Lexington, Kentucky, Fazoli's is renowned for offering high quality, moderately priced Italian food favorites, including freshly prepared pasta, Submarinos® sandwiches, and unlimited signature breadsticks. With nearly 220 franchised and company-owned restaurants in 28 states, Fazoli's blends the speed and value-for-the-money of a quick service restaurant with the quality, atmosphere, and service traditionally found in the casual dining segment.

"Sentinel has been an outstanding partner to Fazoli's through a transformational period of our company's history," said Fazoli's CEO, Carl Howard. "Since our partnership with Sentinel began, Fazoli's has completed a successful refranchising, grew average unit volumes by more than 30%, and built our new franchise pipeline to an all-time high."

"Fazoli's has performed exceptionally well during our partnership thanks to its world-class management team, its offering of high-quality food at a reasonable price, and its off-premise capabilities, including drive-thru, delivery, and take-out ordering," said John Van Sickle, a Sentinel partner. "It has been a privilege to partner with Carl and the rest of the Fazoli's team. All of us at Sentinel wish them continued success."

Sentinel has significant industry expertise in the franchised restaurant sector. The firm's portfolio currently includes Captain D's and Newk's Eatery. Prior investments include Checkers Drive-in Restaurants (hamburger QSR), Huddle House (family dining), TGI Fridays (casual dining), and Tony Roma's (casual dining). Sentinel's restaurant experience also includes investing in large franchisees, including Border Foods (Taco Bell, Pizza Hut, and KFC), Falcon Holdings (Church's® Chicken), and Southern California Pizza (Pizza Hut).

About Sentinel Capital Partners
Sentinel specializes in buying and building midmarket businesses in the United States and Canada in partnership with management. Sentinel targets aerospace and defense, business services, consumer, distribution, food and restaurants, franchising, healthcare, and industrial businesses. Sentinel invests in management buyouts, recapitalizations, corporate divestitures, going-private transactions, and structured equity investments of established businesses with EBITDA of up to $80 million. Sentinel also invests in special situations, including balance sheet restructurings, operational turnarounds, and minority junior capital solutions. For more information about Sentinel, visit www.sentinelpartners.com.

About Fazoli's
Founded in 1988 in Lexington, Kentucky, Fazoli's owns and operates nearly 220 restaurants in 28 states, making it the largest premium QSR Italian chain in America. Fazoli's prides itself on serving premium quality Italian food, fast, fresh and friendly. Menu offerings include freshly prepared pasta entrees, Submarinos® sandwiches, salads, pizza and desserts – along with its unlimited signature breadsticks. To learn more, please visit www.fazolis.com.

Contact: Roland Tomforde
Broadgate Consultants
212-232-2222

SOURCE Sentinel Capital Partners