BOSTON and UNIVERSITY
PARK, Fla. and NEW YORK,
July 27, 2017 /PRNewswire/
-- Advent International, one of the largest and most
experienced global private equity investors, today announced that
it has agreed to make a majority investment in First Watch
Restaurants Inc. ("First Watch"), the prominent breakfast, brunch
and lunch concept. First Watch's existing management team will
continue to lead the company and will retain a meaningful equity
stake in the business. The transaction is expected to close in the
coming weeks. Financial terms were not disclosed. First Watch is a
portfolio company of Freeman Spogli & Co.
Headquartered in University Park,
Florida, and founded in 1983, First Watch operates
full-service daytime cafés under the First Watch and The Egg &
I brands. The restaurants serve breakfast, brunch and lunch from
7 a.m. to 2:30 p.m., seven days a
week. The company provides customers a unique farm-to-table
experience through a variety of healthy, traditional and indulgent
offerings, with a focus on fresh ingredients and outstanding
service. First Watch currently has more than 300 locations across
26 states, predominantly in Florida, Texas, Ohio,
Colorado and Arizona.
"First Watch is a fresh and modern restaurant concept, serving
craveable food with exceptional customer service," said
Tricia Patrick, Managing Director at
Advent. "We are excited to partner with Ken
Pendery, Chris Tomasso and
the talented management team at First Watch, and to lend our
expertise to support continued restaurant expansion, digital
investment and innovation in the breakfast category. First Watch is
strongly aligned with trends toward healthier eating and better
ingredients, and positioned to not only grow within existing
markets but also to expand the unique concept to guests in new
geographies."
"This is an exciting time for us at First Watch, and we are very
pleased to be working with Advent as we enter our next phase of
growth," said Kenneth L. Pendery
Jr., Chief Executive Officer of First Watch. "With Advent's
support, we look forward to deepening our connection with
consumers, building on our core business of serving healthy,
high-quality breakfast, brunch and lunch, and continuing our
thoughtful approach to driving significant value. We sincerely
thank the team at Freeman Spogli for their trust, support and
partnership in helping us to significantly expand our brand and
solidify our position as the premier daytime-only restaurant
concept in the United States."
In recent years, First Watch has executed an aggressive growth
plan, nearly tripling its total number of restaurants through
organic company-owned restaurant growth, franchising and
acquisitions. This plan has led to growth in revenue and EBITDA.
For First Watch, 2016 marked 33 years of positive same-store sales
growth, as the company finished the year up 7 percent supported by
positive traffic. The brand's strong performance can be attributed
to maintaining a focus on delivering a superior, differentiated
customer experience and culinary offering at an exceptional value
that continues to resonate with a broad consumer demographic.
"We are pleased with First Watch's performance during our
partnership," said John Roth, Chief
Executive Officer at Freeman Spogli. "During our time together, the
company has delivered industry-leading results, including 26
straight quarters of positive same-store sales, while increasing
average unit volumes by 22 percent and nearly tripling EBITDA. We
have enjoyed working with Ken and the First Watch team, and look
forward to watching the business continue to succeed with Advent's
support and expertise."
Advent International has significant investment experience in
the retail, consumer and leisure industry. Over the past 27 years,
the firm has invested more than $9
billion in 71 companies in the sector worldwide. In addition
to First Watch, recent North American investments include Sovos
Brands, whose businesses include Michael
Angelo's Gourmet Foods and Rao's Specialty Foods; Noosa
Yoghurt, lululemon athletica (NASDAQ: LULU), The Coffee Bean &
Tea Leaf, Serta Simmons Bedding, Party City (NYSE: PRTY),
Bojangles' (NASDAQ: BOJA) and Five Below (NASDAQ: FIVE).
Jefferies and North Point Advisors are acting as financial
advisors, and Morgan, Lewis & Bockius is acting as legal
advisor to First Watch and Freeman Spogli in connection with the
transaction. Weil, Gotshal & Manges is serving as legal advisor
to Advent International.
About FIRST WATCH
Founded in 1983 in Pacific Grove, CA, First Watch specializes in
award-winning, made-to-order Breakfast, Brunch and Lunch. A
recipient of more than 200 "Best Breakfast" and "Best Brunch"
accolades, First Watch offers traditional favorites, such as
omelettes, pancakes, sandwiches and salads, and unique specialty
items like Quinoa Power Bowls, Avocado Toast and the Chickichanga.
First Watch was named the 2016 top Family Dining restaurant by
Consumer Reports, a 2015 Top Consumer Pick by Nation's Restaurant
News and a 2014 Top Franchise Value by FSR Magazine. First Watch is
the largest and fastest-growing daytime-only restaurant concept in
the United States with more than
300 restaurants in 26 states, including more than 200 First Watch
restaurants, 90 The Egg & I restaurants and one Bread &
Company restaurant in Nashville.
For more information, visit firstwatch.com.
About Advent International
Founded in 1984, Advent
International is one of the largest and most experienced global
private equity investors. The firm has invested in over 325 private
equity transactions in 40 countries and as of March 31, 2017, had $39
billion in assets under management. With offices on four
continents, Advent has established a globally integrated team of
190 investment professionals across North
America, Europe,
Latin America and Asia. The firm focuses on investments in five
core sectors, including business and financial services;
healthcare; industrial; retail, consumer and leisure; and
technology, media and telecom. After more than 30 years dedicated
to international investing, Advent remains committed to partnering
with management teams to deliver sustained revenue and earnings
growth for its portfolio companies. For more information, visit
www.adventinternational.com.
ABOUT FREEMAN SPOGLI & CO.
Freeman Spogli &
Co. is a private equity firm dedicated exclusively to investing in
and partnering with management in consumer-related and distribution
companies in the United States.
Since its founding in 1983, Freeman Spogli has invested over
$3.8 billion in 56 portfolio
companies with an aggregate transaction value of approximately
$22 billion, and is currently making
investments from FS Equity Partners VII, L.P. Freeman Spogli has offices in Los Angeles and New
York. For additional information, visit
www.freemanspogli.com.
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SOURCE Advent International