Roark Capital Group, an Atlanta-based private equity firm, announced it acquired Schlotzsky's for an undisclosed amount Nov. 20.
The sandwich chain has become a wholly-owned subsidiary of FOCUS Brands Inc., a company owned by affiliates of Roark Capital Group. The sale marks the restaurant's second in two years.
In 2004, Schlotzsky's was purchased out of bankruptcy court by Fort Worth-based Bobby Cox Cos. Inc. for $28.5 million.
Founded in 1971 as the home of the Original toasted sandwich and headquartered in Austin, Texas, Schlotzsky's has approximately 365 franchised and company-owned locations generating $210 million of system-wide revenues throughout the United States and six foreign countries.
FOCUS Brands is the franchisor and operator of nearly 1,400 ice cream stores, bakeries and cafes under the brand names Carvel, Cinnabon and Seattle's Best Coffee. With its acquisition of Schlotzsky's, FOCUS Brands said it has four franchise brands generating nearly $800 million in system-wide revenue in 50 states and 33 countries.
"Schlotzsky's is a great fit for us," said Neal Aronson, founder and managing partner of Roark. "It is a well known brand with high quality, freshly made, differentiated products that people love."
According to a news release, Cox will join the FOCUS Brands' board of directors and re-invest a portion of his proceeds in the stock of FOCUS Brands.
FOCUS Brands said all Schlotzsky's associates have been offered jobs with FOCUS Brands, and the brand headquarters will remain in Austin.
