Castle Harlan in Puerto Rican Whopper Deal

The New York buyout firm has agreed to acquire the operator of 165 Burger King restaurants in the Caribbean US commonwealth.


Castle Harlan, the New York buyout firm, has agreed to purchase Caribbean Restaurants, the operator of 165 Burger King restaurants in Puerto Rico, for $340 million (€280 million).

 

The deal represents a significant exit event for Oak Hill Capital Partners and American Securities Capital Partners, which acquired the restaurant company in 1999. The firms will reportedly see a 2.5 times return on their investment in the company.

 

David Pittaway, a senior managing director at Castle Harlan, led the deal for the firm.

 

Caribbean Restaurants will continue to be led by its founder and chief executive officer, Luis Arenas.

 

Castle Harlan has long been involved with restaurant franchises. It owns Morton’s Restaurant Group, a steakhouse chain, and McCormick & Schmick’s, a seafood chain.

 

Castle Harlan was founded in 1987. The firm also has a division in Australia called CHAMP.

 

Oak Hill Capital, based in New York, is affiliated with the Robert M. Bass family office of Texas.