Bain Capital, The Carlyle Group and Thomas H. Lee Partners have sold West Coast sandwich chain Togo’s Eateries, a division of their portfolio company Dunkin’ Brands, to San Francisco private equity firm Mainsail Partners for an undisclosed amount.
Bain, Carlyle and THL paid $2.43 billion to acquire Dunkin’ Brands from French drinks giant Pernod Ricard in January 2006 after a bidding war. Shortly after the deal closed Dunkin’ Brands chairman and chief executive Jon Luther announced that the company would divest Togo’s.
“With the attention of the Dunkin’ Brands leadership team focussed squarely on accelerating our growth through global expansion of our larger Dunkin’ Donuts and Baskin-Robbins businesses, we believe a sale of Togo’s will best position the brand to continue to achieve its own promising growth path,” Luther said.
Mainsail has acquired Togo’s in partnership with Tony Gioia, an executive partner at Emigrant Capital, the $150 million private equity fund of New York’s Emigrant Savings Bank. Gioia, who will be chairman and chief executive of Togo’s, has extensive restaurant chain industry experience. He was formerly president of Baskin Robbins, which later became a part of Dunkin’ Brands, and was also president and chief executive of Tully’s Coffee Corp and a co-founder of Wolfgang Puck Worldwide.
Togo’s was founded in 1968, and purchased by Dunkin’ Brands in 1997. Togo’s currently has 261 franchise locations in the western US. The company had sales of $157 million (€106 million) in 2006.
The eatery is Mainsail’s sixth investment. The private equity firm was founded in 2003 by Jason Payne and Gavin Turner, previously of Summit Venture Partners. The firm’s other investments include management training firm IP Solutions, home nursing care provider Professional Healthcare at Home and accounts receivable management services company Cash Management Solutions.