PE, VC investors back CAVA's $300M take-private of Zoës Kitchen
August 20, 2018
CAVA has struck a roughly $300 million deal to take rival Mediterranean restaurant chain Zoës Kitchen private. The move, supported by existing CAVA investors Invus Group, Revolution Growth and SWaN & Legend Venture Partners, will create a combined company with 327 restaurants across 24 US states. Priced at $12.75 per share, CAVA's bid represents a 33% premium to Zoës Kitchen's closing price on Thursday.
Founded in 2010, CAVA has raised roughly $100 million in equity financing. The restaurant chain, which also makes a line of dips and spreads available at Amazon's Whole Foods Market, secured a $223 million valuation with a $35 million round last year. The pending deal will be financed in part through a new equity investment in CAVA led by Act III, an investment vehicle created by Panera Bread founder Ron Shaich.
Zoës Kitchen generated $102.1 million in 1Q revenue, representing a YoY uptick of 12.7% even as comparable restaurant sales registered a 2.3% decrease. It now has 35 days to shop for a better bid but would owe CAVA a termination fee of $8.5 million to abandon the deal. Shares of Zoës Kitchen (NYSE: ZOES) served up a 33% gain Friday.
Related read: KKR group eyes KFC, Pizza Hut in potential mega-deal
Founded in 2010, CAVA has raised roughly $100 million in equity financing. The restaurant chain, which also makes a line of dips and spreads available at Amazon's Whole Foods Market, secured a $223 million valuation with a $35 million round last year. The pending deal will be financed in part through a new equity investment in CAVA led by Act III, an investment vehicle created by Panera Bread founder Ron Shaich.
Zoës Kitchen generated $102.1 million in 1Q revenue, representing a YoY uptick of 12.7% even as comparable restaurant sales registered a 2.3% decrease. It now has 35 days to shop for a better bid but would owe CAVA a termination fee of $8.5 million to abandon the deal. Shares of Zoës Kitchen (NYSE: ZOES) served up a 33% gain Friday.
Related read: KKR group eyes KFC, Pizza Hut in potential mega-deal
Tags:
Join the more than 1.5 million industry professionals who get our daily newsletter!