Franchising
Goldman Sachs grabs a piece of Zaxby's
November 19, 2020
Zaxby's, which has 900 units in 17 states, will have a new investor when investment funds managed by the Goldman Sachs Merchant Banking Division "acquire a significant stake in the company" by year's end, according to a company press release.
"This partnership symbolizes the strength of our company and (Goldman Sachs') involvement will accelerate our growth and expansion into a national brand," said Zach McLeroy, Zaxby's co-founder and CEO, said in the release.
Zaxby's will use Goldman Sachs' resources to accelerate profitable growth for the brand and franchisees while keeping guests in the forefront, the release said.
"Zaxby's is a fantastic company with a founder-led culture, loyal customers, and talented employees. We are excited to partner with the management team to provide long-term capital for their next phase of expansion," Nicole Agnew, managing director in the Goldman Sachs Merchant Banking Division, said in the release. "We are confident we can grow the brand while remaining authentic to what people love about the restaurants."
Morgan Stanley & Co. LLC and Stephens Inc. served as financial advisors to Zaxby's. King & Spalding LLP and Fortson, Bentley and Griffin, P.A. served as legal advisors to Zaxby's. Weil, Gotshal & Manges LLP served as legal advisor and Goldman Sachs served as financial advisor to Goldman Sachs Merchant Banking.
