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By Abigail Summerville
NEW YORK (Reuters) – The private equity owner of Benihana is considering a sale that could value the American restaurant chain, known for its teppanyaki and Japanese sushi, at about $600 million or more, including debt, according to people familiar with the matter. .
The potential sale comes after Cava Group Inc’s successful initial public offering boosted investor sentiment in the restaurant sector, which has taken a beating during lockdowns brought on by the COVID-19 pandemic.
Shares of Cava, a Mediterranean restaurant chain, have more than doubled in value since it raised $318 million with its New York listing last month.
Angelo Gordon & Co., which acquired Benihana for $296 million in 2012 and works with investment banker Piper Sandler Companies, is in the process of being sold, the four sources said.
The sources added that Benina achieved profits over 12 months before interest, taxes, depreciation and amortization of about $60 million.
The sources alerted that there was no confirmed deal and requested anonymity because the matter is a matter of confidentiality.
Angelo Gordon, who in May agreed to sell himself to private equity firm TPG Inc for $2.7 billion, declined to comment. Representatives for Benihana and Piper Sandler did not respond to requests for comment.
Benihana has more than 100 restaurants under the Benihana, Ra Sushi, and Samurai brands, including Benihana franchises in the United States, the Caribbean, Central America, and South America.
Company founder Hiroaki “Rocky” Aoki opened his first restaurant in New York City in 1964, featuring an authentic Japanese farmhouse interior and food prepared in front of customers on steel teppanyaki grills.
Buying companies have shown an affinity for well-known restaurant franchises. Goldman Sachs Group Inc (NYSE:) acquired a stake in Zaxby’s chicken restaurant in 2020. Roark Capital-backed Inspire Brands Inc acquired Dunkin’ Brands (NASDAQ:) Group Inc that same year for $11.3 billion.
Reuters reports that the Subway sandwich chain’s efforts this year to scout a sale attracted interest from several private equity firms.
