Fiesta Restaurant Group, including its Caribbean-themed chain Pollo Tropical, will be acquired by Authentic Restaurant Brands, a New York-based portfolio company of investment firm Garnett Stanton Partners.
The company will purchase the brand for $8.50 per share, totaling $225 million, reports the Wall Street Journal.
“We have been fans of Fiesta and their Pollo Tropical restaurants for some time,” said Alex Macedo, chairman of Authentic Restaurant Brands, in a statement. “Pollo Tropical restaurants are a mainstay on the dining scene throughout Florida, and we are confident that ARB is a perfect partner to harness the power of the brand for the future.”
Upon closing the transaction, which is expected by the end of 2023, Fiesta will operate as a privately held company and Pollo Tropical will remain based in Miami. Fiesta’s leadership team will continue to operate Pollo Tropical as an independent brand within the Authentic Restaurant Brands platform.
“With this transaction, Fiesta will be better positioned financially and operationally to advance our mission of providing great food and hospitality to our guests,” said Dirk Montgomery, Fiesta Restaurant Group president and CEO, in a statement. “Garnett Station has a proven track record of successfully identifying and partnering with iconic, regionally focused brands to help accelerate their growth. We look forward to working closely with Alex, Felipe, and the rest of the Garnett Station and ARB teams and to benefiting from their extensive restaurant, digital and analytical expertise as we focus on supporting the success of our brand, franchisees, and people.”
Fiesta owned and operated 137 locations in Florida as of January 1, 2023, with an additional 23 franchises outside of the U.S., according to company filings. Together, the locations generated $387.4 million in revenue in 2022.
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