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Two New York Buyout Firms Complete Purchase Of McCormick & Schmick's Seafood Restaurants

websupport@netatwork.com (Super User) — Wed, 22 Aug 2001 00:00:00 +0000

New York, August 22, 2001 - Two New York-based private equity investment firms, Castle Harlan, Inc., and Bruckmann, Rosser, Sherrill and Co., Inc. (BRS), announced today they had completed their purchase of McCormick & Schmick's seafood restaurants from Avado Brands, Inc. (OTC Bulletin Board: AVDO) of Madison, Georgia, in a transaction valued at $123 million.

McCormick & Schmick's management, including founders Bill McCormick and Doug Schmick, also participated in the transaction.

McCormick & Schmick's operates 34 upscale seafood restaurants throughout the United States. In 2000, it had sales of $162.4 million, up from $125.6 million in 1999. Its headquarters is in Portland, Oregon.

Castle Harlan and BRS are both experienced restaurant investors and operators. Castle Harlan formerly owned McCormick & Schmick's but sold it in 1997 to Apple South, a predecessor company of Avado.

Equity Financing for the transaction that has just closed came from Castle Harlan Partners III L.P., a $630 million private equity limited partnership formed in 1997, and from Bruckmann, Rosser, Sherrill & Co. II, L.P. Fleet Boston, SunTrust Bank and IBJ Whitehall Bank formed a group that provided senior debt financing.

Castle Harlan was founded in 1987 by John K. Castle, former president & chief executive officer of Donaldson, Lufkin & Jenrette, the investment banking firm, and Leonard M. Harlan, founder and former chairman of The Harlan Company.

BRS was formed in 1995 by Bruce C. Bruckman, Harold O. Rosser, Stephen C. Sherrill and Stephen F. Edwards and manages approximately $1.2 billion of committed capital. The firm is currently investing its second fund, which has $770 million of committed capital. The founding partners are former senior officers of Citicorp Venture Capital Ltd., where they worked from the mid-1980s until forming their own firm.

Two Buyout Firms Agree to Acquire McCormick & Schmick's Restaurants

websupport@netatwork.com (Super User) — Fri, 08 Jun 2001 00:00:00 +0000

NEW YORK, June 8, 2001 - Two New York-based private equity investment firms, Castle Harlan, Inc., and Bruckmann, Rosser, Sherrill and Co., Inc. (BRS), announced today they had jointly signed an agreement to buy McCormick & Schmick's seafood restaurants from Avado Brands, Inc. (Nasdaq: AVDOC) of Madison, Georgia. The transaction was valued at $123.5 million.

McCormick & Schmick's management, including founders Bill McCormick and Doug Schmick, will also participate in the transaction.

McCormick & Schmick's, based in Portland, Oregon, operates 34 upscale seafood restaurants throughout the United States. In 2000, it had sales of $162.4 million, up from $125.6 million in 1999.

Both Castle Harlan and BRS are experienced restaurant investors and operators. Castle Harlan currently owns Charlie Brown's Steakhouses, Marie Callender's and Luther's Barbecue, and the firm formerly owned Morton's Restaurant Group, as well as McCormick & Schmick's. Castle Harlan sold McCormick & Schmick's in 1997 to Apple South, a predecessor company of Avado, after owning it for about 30 months.

BRS has significant investments in California Pizza Kitchen and Acapulco Restaurants (which recently acquired the El Torito chain) and previously had investments in Au Bon Pain and Restaurant Associates, Inc. (prior owner of Charlie Brown's Steakhouses). In addition, BRS has signed a definitive agreement to purchase Il Fornaio, an operator of upscale Italian restaurants and wholesale bakeries.

David Pittaway, senior managing director at Castle Harlan, noted that McCormick & Schmick's had added 19 restaurants since Castle Harlan sold the company in 1997.

"Obviously, it is a concept that has abundant opportunities for future growth," Pittaway said. "We have great confidence in the talents of Bill McCormick and Doug Schmick and in their vision and prowess in operating fine restaurants."

Hal Rosser, a BRS partner, called McCormick & Schmick's "a unique restaurant concept with a proven track record and an excellent management team. We are excited about the opportunity to invest in a company that has the potential to become a dominant brand in the industry."

Pittaway and Rosser said that equity financing for the transaction would come from Castle Harlan Partners III L.P., a $630 million private equity limited partnership formed in 1997, and from Bruckmann, Rosser, Sherrill & Co. II, L.P. Fleet Boston, SunTrust and IBJ Whitehall Bank formed a group to provide senior debt financing.

BRS was formed in 1995 by Bruce C. Bruckman, Harold O. Rosser, Stephen C. Sherrill and Stephen F. Edwards and manages approximately $1.2 billion committed capital. The firm is currently investing its second fund, which has $770 million of committed capital. The founding partners are former senior officers of Citicorp Venture Capital Ltd., where they worked from the mid-1980s until forming their own firm.

Castle Harlan Announces Sale Of Oregon Restaurant Company

websupport@netatwork.com (Super User) — Thu, 06 Feb 1997 00:00:00 +0000

NEW YORK, February 6, 1997-Castle Harlan, Inc., the New York merchant bank, announced today it had signed an agreement to sell McCormick & Schmick's restaurants of Portland, Oregon, to Apple South, Inc. (NASDAQ/NM:APSO), a large restaurant company based in Madison, Georgia, for $68 million.

The purchase price will be paid in a combination of cash, stock and assumed debt, said David Pittaway, Castle Harlan managing director.

McCormick & Schmick's operates 16 upscale seafood restaurants in Oregon, Washington and California, as well as in Denver and Washington, D.C. Castle Harlan

Partners II, a $275 million investment fund managed by Castle Harlan, made a significant equity investment in McCormick & Schmick's in October 1994. The transaction is expected to close before the end of the first quarter. For Castle Harlan investors, it will represent an annual compound return on the investment of approximately 85 percent, Mr. Pittaway said.

Apple South is a multi-concept restaurant company with more than $500 million in sales. It operates a total of 310 casual dining restaurants in the South, Mid-Atlantic states and Midwest, including 236 Applebee's Neighborhood Grill & Bar locations, 63 Don Pablo's and 11 Harrigan's.

Castle Harlan was founded in 1987 by John K. Castle, former president and chief executive officer of Donaldson, Lufkin & Jenrette, the investment banking firm, and a pioneer in private equity limited partnership investing, and Leonard M. Harlan, founder and former chairman of The Harlan Company, a real estate investment and financial advisory firm.

Since its inception, Castle Harlan has completed acquisitions exceeding $2.5 billion.

Castle Harlan investments have included Delaware Management Company, the Philadelphia money management firm with some $30 billion under management; INDSPEC Chemical Corp., a specialty chemical company; Smarte Carte, the airport baggage rental company, MAG Aerospace, the world's leading manufacturer of aircraft sanitation systems, and Commemorative Brands, Inc., one of the leading manufacturers and distributors of class rings and other specialty jewelry under the ArtCarved and Balfour brand names.