Secondary Buyout • Restaurants

CR3 Capital and Perpetual Capital Partners Acquire Garden Fresh

On August 7, 2017, private equity firms CR3 Capital and Perpetual Capital Partners acquired restaurant Garden Fresh from Cerberus Capital Management

Acquisition Context
  • This is CR3 Capital’s 1st and Perpetual Capital Partners’ 1st transaction in the Restaurants sector.
  • This is CR3 Capital’s 1st and Perpetual Capital Partners’ 2nd transaction in the United States.
  • This is CR3 Capital’s 1st and Perpetual Capital Partners’ 2nd transaction in California.
Investment Fate
  • Garden Fresh was sold to a consortium of financial buyers in 2020.

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M&A Deal Summary

Date August 7, 2017
Target Garden Fresh
Sector Restaurants
Buyer(s) CR3 Capital
Perpetual Capital Partners
Sellers(s) Cerberus Capital Management
Deal Type Secondary Buyout

Target Company

Garden Fresh

San Diego, California, United States
Garden Fresh offers a broad variety of fresh food alternatives in an all-you-care-to-eat format. Each day begins fresh at the more than 100 company-owned restaurants in 11 states. More than 300 million guests since 1978 have helped us be number one in fresh produce and salads, made-from-scratch soups, hot pastas, freshly baked breads and muffins, fresh fruit, desserts, and more. Guests have the freedom to create their own wholesome meal in a one-of-a-kind dining experience in a friendly atmosphere and all at an everyday value.
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Buyers Overview 2

DESCRIPTION

CR3 Capital is an operationally focused private equity firm focused primarily on businesses in transition. Prospective situations include underperforming companies, family successions, restructurings, or corporate divestitures. The Firm will consider opportunities throughout North America with at least $25 million of revenue. Sectors of interest include aerospace, defense, business services, consumer, retail, food, beverages, manufacturing, industrials, restaurants, and transportation. CR3 Capital is headquartered in Dallas, Texas.


Deal Context for Buyer #
Overall 1 of 2
Sector: Restaurants 1 of 1
Type: Secondary Buyout 1 of 1
State: California 1 of 1
Country: United States 1 of 2
Year: 2017 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-02-27 Xymat

Colorado Springs, Colorado, United States

Xymat is a manufacturer of specialty containers and material handling solutions for specific operational sites of the U.S. Department of Energy. The Company utilizes its extensive advanced welding and machining capabilities to provide high quality products to its longstanding customer base. Xymat was founded in 1974 and is based in Colorado Springs, Colorado.

Buy -
DESCRIPTION

Perpetual Capital Partners is a private investment firm focused on acquiring and making growth capital investments in growth-oriented, profitable, lower middle-market companies. The Firm seeks companies with $5 to $15 million of cash-flow and will consider opportunities in the consumer, retail, industrial, media, information services, financial services, and business services. Perpetual Capital Partners was formed in 2013 and is based in Arlington, Virginia.


Deal Context for Buyer #
Overall 2 of 4
Sector: Restaurants 1 of 1
Type: Secondary Buyout 2 of 4
State: California 2 of 3
Country: United States 2 of 4
Year: 2017 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2016-01-06 California Family Fitness

Orangevale, California, United States

California Family Fitness ('CFF') is the market-owner and operator of fitness centers in the greater Sacramento, California area. CFF currently has 16 mid-to-large format club locations, each of which offers a selection of modern exercise equipment, swimming pools and basketball/racquetball courts as well as member services such as fitness class instruction, child care, tanning, sauna and steam rooms, and organized sports leagues.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2020-05-01 Garden Fresh

San Diego, California, United States

Garden Fresh offers a broad variety of fresh food alternatives in an all-you-care-to-eat format. Each day begins fresh at the more than 100 company-owned restaurants in 11 states. More than 300 million guests since 1978 have helped us be number one in fresh produce and salads, made-from-scratch soups, hot pastas, freshly baked breads and muffins, fresh fruit, desserts, and more. Guests have the freedom to create their own wholesome meal in a one-of-a-kind dining experience in a friendly atmosphere and all at an everyday value.

Sell -

Seller Profile 1

SELLER

Cerberus Capital Management

New York, New York, United States

Investor Investor Investor Investor Investor


Category Asset Manager
Founded 1992
PE ASSETS 55.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Cerberus Capital Management is a private investment firm that targets a wide range of global investments. Cerberus primarily looks for undervalued or distressed situations. Industry sectors of interest include aerospace and defense, apparel, automotive and industrial, building products, commercial services, consumer and retail, financial services, healthcare, manufacturing and distribution, paper, packaging, and printing, real estate, technology, telecommunications, transportation, and travel. In addition to private equity investing, Cerberus also provides corporate credit and acquires real estate. Cerberus was formed in 1992 by Steve Feinberg and is based in New York City.


Deal Context for Seller #
Overall 35 of 57
Sector: Restaurants 1 of 1
Type: Secondary Buyout 4 of 6
State: California 2 of 3
Country: United States 26 of 39
Year: 2017 4 of 7
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-07-31 ETC Global Group

Los Angeles, California, United States

ETC Global Group is a preeminent brokerage and clearing group, which, through its subsidiaries, offers sophisticated clearing, settlement and custodial services to securities industries participants, such as broker-dealers. ETC Global Group was founded in 2007 and is based in Los Angeles, California.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-09-04 Admiral Taverns

Chester, United Kingdom

Admiral Taverns is an owns and operator of an estate of 845 predominantly wet-led pubs, mainly across England and Wales with a broad geographic distribution. Admiral Taverns is based in Chester, United Kingdom.

Sell £37M