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Logan’s Roadhouse inks sale to Kelso & Co.

Deal comes two months after Logan’s filed for an IPO

Logan’s Roadhouse Inc. said Monday it struck an agreement to be sold to private-equity firm Kelso & Co.

Terms of the deal were not disclosed.

Kelso is a New York-based private-equity firm that holds investments in numerous industries, including the consumer and retail segments. According to its website, it held a stake in IHOP Corp. in 1987.

Nashville, Tenn.-based Logan’s, the operator or franchisor to 214 casual-dining restaurants, has been owned by New York-based Bruckmann, Rosser, Sherrill & Co., Los Angeles-based Black Canyon Capital and members of the brand's managment team since 2006. The investment group purchased Logan’s from then parent company CBRL Group Inc. for about $486 million.

“Kelso is committed to supporting Logan’s as we enter our next growth phase and we look forward to working closely with them as our future financial sponsor,” Tom Vogel, Logan’s chief executive, said in statement. “BRS and Black Canyon have served as valuable partners to Logan’s, providing strong support for our continued growth as we’ve successfully navigated a very challenging economic environment.”

The deal is subject to regulatory approvals.

The proposed sale to Kelso follows closely behind a Logan’s filing with securities regulators in June for a $200 million initial public offering. The IPO was slated to finance the chain’s expansion plans and pay down debt, the company said in a prospectus filed with the Securities and Exchange Commission at that time.

For the fiscal year ended July 2009, the company reported annual sales of $535.5 million, according to data collected by Nation’s Restaurant News for its Top 100 census issue. According to public filings, Logan¹s reported total revenue of $416 million for the 39 weeks ended May 2, compared with $403.7 million in the same time frame a year earlier.

Credit Suisse and North Point Advisors acted as financial advisors to Logan’s in connection with the transaction.

Contact Elissa Elan at [email protected]
 

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