Sun Capital axes one deal, closes another

Sun Capital Partners has completed its acquisition of US restaurant chain Smokey Bones Barbeque & Grill, and has walked away from a buyout of mattress maker International Bedding.

Distressed specialist Sun Capital Partners has walked away from its planned acquisition of International Bedding, as growing numbers of leveraged buyouts are scuttled as a result of the drying up of the debt markets.

Smokey Bones

The firm had reported that the deal was completed in May, but the Canadian mattress maker said last week that it has engaged Mesirow Financial Consulting to assist the company with its “strategic direction”. Sun Capital declined to comment on the status of the deal.

Meanwhile, the firm completed its acquisition of Smokey Bones Barbeque & Grill from Darden Restaurants for an undisclosed amount.

The chain currently has 73 locations in the eastern US. Darden put the chain on the block this May after closing 56 Smokey Bones restaurants.

“Smokey Bones has lagged the performance of Darden's other brands as the barbecue concept's core guests chose to dine at Smokey Bones with less frequency,” Darden said in a statement at the time.

Darden also owns the Red Lobster, Olive Garden and Bahama Breeze restaurant chains.

“Smokey Bones is an exciting concept with the right ingredients for future growth,” Sun Capital vice president Anthony Polazzi said in a statement. “High average sales per restaurant, strong restaurant management teams, established operating systems and a unique barbeque flavor platform that is growing in popularity.”

Sun Capital invests heavily in the restaurant sector. Its portfolio contains Boston Market, Friendly Ice Cream, Sweet Tomatoes, Chevy’s Fresh Mex, Fazoli’s and Bruegger’s Bagels.