Private equity funds managed by Blackstone will acquire Tropical Smoothie Cafe, a franchisor of fast casual restaurants, from Levine Leichtman Capital Partners, marking the first deal from the most recent vintage of Blackstone’s flagship PE strategy.
This marks Blackstone’s latest investment in a franchisor follows its previous acquisitions of Hilton Hotels and SERVPRO. Terms of the transaction have not been disclosed.
According to a press release, Blackstone will help “accelerate Tropical Smoothie Cafe’s already-rapid expansion through continued investment in menu innovation, operating excellence, and best-in-class marketing”.
Tropical Smoothie Cafe began operating in Destin, Florida in 1997 and has grown to more than 1,400 locations in 44 US states. The company opened more than 175 new locations last year, 70% of which were opened by existing franchisees.
In a statement, Peter Wallace, a Senior Managing Director within Blackstone’s private equity business, said, “Tropical Smoothie Cafe has had an impressive growth trajectory consistently building on its loyal customer base as it has scaled nationwide. Blackstone has deep experience helping accelerate the expansion of leading franchise businesses as one of our highest-conviction investment areas. We believe our capital and resources will help position Tropical Smoothie Cafe for continued success and innovation for the benefit of its guests and franchisees.”
Barclays and Simpson Thacher & Bartlett advised Blackstone. Baird, North Point, BofA Securities and Kirkland & Ellis advised Tropical Smoothie Cafe.
