Bruckmann Rosser leads restaurant deal

The New York private equity firm has teamed with Los Angeles hedge fund Canyon Capital to acquire Logan’s Roadhouse for $486m.

CBRL Group, a holding company based in Lebanon, Tennessee, has agreed to sell Logan’s Roadhouse, one of its two restaurant chains, to a private equity group for $486 million (€381 million), CBRL said in a statement. The group includes New York-based private equity firm Bruckmann, Rosser, Sherrill & Co. (BRS), Los Angeles-based hedge fund Canyon Capital Advisors, and Canyon’s associated private equity and debt investment firm Black Canyon Capital.

The parties involved expect the deal to close by November 30, the statement said.

Based in Nashville, Tennessee and founded in 1991, Logan’s Roadhouse has a presence in 20 states, with a total of more than 160 restaurants. Its menu includes a steaks, burgers, ribs and salads.

CBRL is also the holding company for Cracker Barrel Old Country Store restaurants and gift shops. There are more than 500 Cracker Barrell restaurants and stores in 41 states.

This investment is not BRS’s first in the restaurant industry. BRS joined Castle Harlan, a New York-based private equity firm, to make a majority investment in Columbus, Ohio-based Bravo Development, the operator of 50 Italian restaurants in 19 states, in July.

Canyon has previously taken part in debt investment. The firm assisted in the credit facility of Bally Total Fitness’s closing process last month. Black Canyon, in conjunction with Cyrus Capital Partners, provided $177 million to Richard Branson’s airline Virgin America as startup funding last year.