Secondary Buyout • Restaurants

Palladium Equity Partners and Prospect Capital Management Acquire Taco Bueno

On June 27, 2005, private equity firm Palladium Equity Partners and business development company Prospect Capital Management acquired restaurant Taco Bueno from Jacobson Partners

Acquisition Context
  • This is Palladium Equity Partners’ 1st and Prospect Capital Management’s 1st transaction in the Restaurants sector.
  • This is Palladium Equity Partners’ 9th and Prospect Capital Management’s 6th transaction in the United States.
  • This is Palladium Equity Partners’ 1st and Prospect Capital Management’s 2nd transaction in Texas.
Investment Fate
  • Taco Bueno was sold to a consortium of financial buyers in 2015.
  • Taco Bueno went bankrupt in 2018.
  • Taco Bueno was sold to a strategic buyer in 2019.

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M&A Deal Summary

Date June 27, 2005
Target Taco Bueno
Sector Restaurants
Buyer(s) Palladium Equity Partners
Prospect Capital Management
Sellers(s) Jacobson Partners
Deal Type Secondary Buyout

Target Company

Taco Bueno

Farmers Branch, Texas, United States
Taco Bueno is a premium quality, quick-service restaurant chain offering fast-casual quality Mexican cuisine at fast-food price and convenience. Taco Bueno was established in 1967 and headquartered in Farmers Branch, Texas.
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Buyers Overview 2

Buyer

Palladium Equity Partners

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1997
PE ASSETS 3.0B USD
Size Large
Type Sector Agnostic
DESCRIPTION

Palladium Equity Partners is a private equity firm that looks to invest in businesses focused on the US Hispanic marketplace. Target sectors include business services, financial services, consumer/retail, food/restaurants, healthcare, manufacturing, and media. Palladium's target investment size is $50 to $150 million with an EBITDA of $10 to $75 million. The Firm will consider investing in mature, stable businesses as well as younger companies and turnaround situations. Palladium Equity Partners was formed in 1997 and is based in New York, New York.


Deal Context for Buyer #
Overall 9 of 55
Sector: Restaurants 1 of 1
Type: Secondary Buyout 1 of 9
State: Texas 1 of 8
Country: United States 9 of 54
Year: 2005 2 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-02-28 Phibro

Teaneck, New Jersey, United States

Phibro is a global diversified animal health and mineral nutrition company. Phibro develops, manufactures and markets a broad range of products for food animals including poultry, swine, beef and dairy cattle and aquaculture. Phibro's products help prevent, control and treat diseases, enhance nutrition to help improve health and contribute to balanced mineral nutrition. Phibro was founded in 2014 and is based in Teaneck, New Jersey.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-10-26 ProAmerica Bank

Los Angeles, California, United States

ProAmerica Bank is a full-service commercial bank, dedicated to building family wealth by empowering entrepreneurs with the requisite financial services and capital infusion for the success of their small to mid-size business, including real estate and construction loans, lines of credit, term loans and SBA loans, as well as a full complement of deposit products and business services.

Buy -
Buyer

Prospect Capital Management

New York, New York, United States

Investor Investor Investor Investor Investor


Category Business Development Company
Founded 1988
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

Prospect Capital Corporation is a publicly traded mezzanine debt and private equity firm that primarily provides non-control financing to support growth, recapitalizations, acquisitions, and development. Prospect will selectively consider control acquisitions by providing multiple levels of the capital structure. Prospect was initially formed in 1988 and went public 2004. The Firm is based in New York City.


Deal Context for Buyer #
Overall 6 of 86
Sector: Restaurants 1 of 1
Type: Secondary Buyout 1 of 19
State: Texas 2 of 15
Country: United States 6 of 83
Year: 2005 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-06-01 Borga

Fowler, California, United States

Borga, Inc. manufactures steel buildings and components for the Commercial, Industrial, Agricultural and Residential markets.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-01-01 Glo Skin Beauty

Denver, Colorado, United States

Glo Skin Beauty is a developer, marketer and distributor of mineral-based cosmetics and high-end skincare serving dermatologists, cosmetic surgeons, licensed aestheticians, spas/salons and select specialty retailers. Company brands include glominerals, mineral fusion, glotherapeutics, and glospa. Glo Skin Beauty was founded in 2000 and is based in Denver, Colorado.

Buy -

Seller Profile 1

SELLER

Jacobson Partners

New York, New York, United States

Category Private Equity Firm
Founded 1989
Size Small
Type Sector Agnostic
DESCRIPTION

Jacobson Partners is a lower middle-market private equity firm focused on acquiring non-core divestitures and other underperforming mid-sized companies in the US and Canada. Jacobson generally targets opportunities in basic industries such as manufacturing and services. The Firm seeks to invest between $10 and $25 million of equity in transactions valued up to $150 million. Jacobson Partners was formed in 1989 and is based in New York City.


Deal Context for Seller #
Overall 4 of 6
Sector: Restaurants 1 of 1
Type: Secondary Buyout 1 of 1
State: Texas 1 of 1
Country: United States 4 of 6
Year: 2005 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-01-01 TUG Technologies

Kennesaw, Georgia, United States

TUG is a provider of aviation ground support equipment. TUG products such as aircraft tow tractors, air start units, belt loaders, ground power units and baggage tow tractors can be found at airport gate operations around the world. In addition, TUG manufactures vehicles to support military and industrial clients.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-10 HHI FormTech

Royal Oak, Michigan, United States

HHI FormTech LLC is a designer and manufacturer of forged and forged/machined components for the automotive industry.

Buy -