Franchising

Tropical Smoothie Cafe getting new owner

Photo: TSC

April 25, 2024

Atlanta-based Tropical Smoothie Cafe will be under new management when Blackstone acquires the 1,400-unit brand from Levine Leichtman Capital Partners, a Los Angeles-based private equity firm.

Matthew Frankel, managing partner of LLCP, said he was grateful for the partnership with the Tropical Smoothie Cafe team.

"Tropical Smoothie Cafe has been a phenomenal investment for LLCP given the Company's robust franchise development activity and exceptional same-store sales growth," he said in a company press release. "The accelerated growth we achieved working alongside their management team was driven by several key value creation initiatives, including accelerated unit signings and openings; strong digital sales growth; menu innovation; expansion of the management team; an increase in the proportion in higher AUV drive-thru units; supply chain improvements; and completing several highly strategic area developer buybacks."

Charles Watson, CEO of Tropical Smoothie Cafe, agreed that the partnership was fruitful.

"LLCP's deep expertise in franchising combined with their management-centric approach made for the perfect partner in scaling our business," he said in the release. "We have appreciated LLCP's support in advancing our strategic initiatives and have benefitted greatly from the collaboration."

Baird served as the lead financial adviser, with support from North Point and BofA Securities, and Kirkland & Ellis LLP served as legal counsel to Tropical Smoothie Cafe in connection with the sale.

LLCP has managed nearly $14.4 billion of institutional capital across 15 investment funds and has invested in over 100 portfolio companies. It manages $9.6 billion of assets and has offices in Los Angeles, New York, Chicago, Miami, London, Stockholm, The Hague and Frankfurt.