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Palladium Equity Partners and Jacobson Partners Announce Agreement for Sale of Taco Bueno Restaurant Chain
NEW YORK, NY — June 27, 2005 — Palladium Equity Partners, LLC, a private equity firm based in New York, announced today that it has signed a definitive agreement to acquire TB Corporation, parent of the Taco Bueno restaurant chain, from Jacobson Partners, a private equity firm based in New York. Taco Bueno is a premium quality, quick service restaurant chain offering Mexican cuisine in locations in Texas, Oklahoma and Kansas.
Founded in 1967 and based in Dallas, Taco Bueno is an established market leader, distinguished by the high quality and freshness of its food, scope of menu, speed and convenience of its service, and reputation for consumer value. With 136 restaurants in three states, operations are currently clustered in Taco Bueno’s primary markets of Dallas/Ft. Worth, Abilene, Texas, Oklahoma City and Tulsa, Oklahoma. Taco Bueno’s revenues for 2004 were approximately $140 million.
“We are very pleased to have reached an agreement to acquire Taco Bueno, one of the fastest-growing Mexican food chains in the quick serve restaurant sector,” said Peter A. Joseph, Managing Director of Palladium Equity Partners, LLC. “The Taco Bueno concept is well established in its existing markets, and the company has posted consistent sales and EBITDA growth. Known for both the quality of its food and the speed and convenience of its service, Taco Bueno has benefited from the widespread and growing popularity of Hispanic flavors and cuisine. We are excited about growth prospects for the company, and have identified substantial opportunities through the organic growth of existing stores, expansion into additional regional markets, and expansion of the company’s franchising program,” Mr. Joseph concluded.
Benjamin R. Jacobson, Managing General Partner of Jacobson Partners, added, “We are proud to have partnered with the current management team on what has been an outstanding investment. Taco Bueno has consistently exceeded our expectations over the past four years and we wish Palladium great success on their plans to capitalize on the growth opportunities available to the company.”
The transaction, subject to customary regulatory approvals, is expected to close by August 2.
Palladium Equity Partners, LLC, based in New York, is a private equity firm focusing investments in middle market companies. Formed in 1997, Palladium currently has committed equity capital in excess of $650 million. Palladium considers investments across a range of industries and target markets and has a particular focus on companies that are well-positioned to capitalize on the fast-growing U.S. Hispanic market. The principals have invested almost $1 billion of equity in 28 portfolio companies over the last two decades.
Jacobson Partners, based in New York, is a private equity firm focused on investments in non-core divisions of large corporations and other middle market companies where it can create value through the involvement of its Operating Partners. Since its founding in 1989, Jacobson Partners has invested more than $200 million in 14 portfolio companies.
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Contacts:
Jeffrey Taufield/ David Lilly
Kekst and Company for Palladium Equity Partners, LLC
(212) 521-4800
Edmund J. Gaffney
Jacobson Partners for Jacobson Partners
(212) 758-4500