NEW YORK, January 20, 2005 - Castle Harlan, Inc., the New York private-equity investment firm, announced today it had reached a definitive agreement to sell Charlie Brown's, the New Jersey-based family steakhouse chain, to Trimaran Capital Partners, also a New York private-equity firm, in a transaction valued at $140 million.
Castle Harlan had acquired Charlie Brown's along with management in 1997 from Restaurant Associates for approximately $50 million. The transaction with Trimaran is expected to close before the end of the first quarter.
Charlie Brown's operates 45 neighborhood steakhouses in the New York metropolitan area. Most are in New Jersey, but it has recently opened units in Commack, Long Island, on Staten Island and in Williamsport, Pennsylvania. It also operates seven more casual outlets called The Office Beer Bar & Grill and two Jolly Trolleys.
Castle Harlan Senior Managing Director Justin Wender said Charlie Brown's had been a very successful investment for the firm, which resulted in a return of approximately four times on Castle Harlan's equity.
"Led by CEO Russell D'Anton, Charlie Brown's has more than doubled its revenues since the acquisition," Wender said, "and the company's growth prospects continue to be outstanding. Perhaps most remarkable, Charlie Brown's has had 13 consecutive years of comparable store sales growth, an amazing achievement."
Charlie Brown's is one of several restaurant properties owned by Castle Harlan. Others include Morton's Steakhouses, McCormick & Schmick's seafood restaurants, Caribbean Restaurants, the most successful quick-service restaurant franchise in Puerto Rico with 167 Burger King units, and Marie Callender's, a chain of family restaurants located primarily in the Western United States.
Castle Harlan, founded in 1987, is a leading New York private-equity investment firm, investing in controlling interests in the buyout and development of middle-market companies in North America and Europe. Castle Harlan's team of nine managing directors, including its founders, has completed more than 60 acquisitions with a total value in excess of $7 billion. The firm traces its roots to the start of the institutionalized private-equity business in the late 1960s.
Castle Harlan also invests in Australia, New Zealand and the Australasian region through its Sydney-based affiliate, CHAMP, which is one of Australia's oldest and largest private equity firms.
Castle Harlan's portfolio companies, which employ more than 26,000 people, include Ames True Temper, a leading manufacturer of lawn and garden tools and accessories; Horizon Lines, one of the largest U.S. container shipping companies, and Advanced Accessory Systems, the largest manufacturer of automotive roof racks and tow systems in North America and Europe.