Broomfield, Colo.-based Noodles & Co. has sold a controlling stake in the chain to private-equity firm Catterton Partners.
Terms of the transaction were not disclosed, but CEO Kevin Reddy is expected to retain his position as CEO, president and chairman, according to a news release.
Catterton Partners, based in Greenwich, Conn., is a private equity firm that has invested in other restaurant chains such as Baja Fesh Mexican Grill, P.F. Chang's China Bistro, Caribou Coffee and Odwalla.
It is unclear how the acquisition could affect Noodles & Company's locally based operations and its 250 restaurants, although the investment will likely boost the chain’s ability to open more stores in 2011. It is not being looked at as a turnaround effort considering the chain has experienced strong growth since it was started 10 years ago.
Noodles & Company was founded in Boulder, Colo., in 1995 by Aaron Kennedy. Reddy joined the business in 2005 and in 2006 moved its headquarters to Broomfield.
Technomic Information Services estimated Noodles’ 2009 sales at $230 million, up from $123 million the firm estimated for 2005 sales.
