Jack's family restaurant
BIRMINGHAM, AL – Onex Corp. in Toronto has agreed to sell the area-based Jack & # 39; s Family Restaurants. The transaction is expected to close in the third quarter of 2019, subject to customary closing conditions and regulatory approvals.
Today the company has more than 145 locations in Alabama, Tennessee, Mississippi and Georgia.
The terms of the transaction were not disclosed, however Onex did provide some meaningful details on the portfolio's financial data. Upon completion of the transaction, Onex expects proceeds of approximately $ 835 million, including prior dividends of $ 106 million. The company acquired Jacks in July 2015 for a total equity investment of $ 234 million. The result is a gross multiplier on invested capital of 3.6 and a gross return of 38%. In addition, Onex has invested $ 79 million in Jacks as a limited partner in Onex Partners IV and will realize $ 255 million upon completion of the transaction, including prior distributions of $ 31 million.
"Over the course of our investment, Jack & # 39; s has accelerated its growth significantly, introducing its differentiated approach, quality groceries and exceptional customer service to new communities in the southern US," said Matt Ross, Managing Director of Onex, in prepared remarks.