Toronto-based Onex Corp. said it was selling its stake in Jack’s Family Restaurants Inc. to an undisclosed buyer in a deal that will close at the end of the third quarter.
Onex bought the Birmingham, Ala.-based quick-service hamburger chain in 2015 for $234 million. The terms of the deal were not disclosed, but Onex said it is more than tripling its investment in the Southeastern chain founded in 1960.
“Over the course of our investment, Jack’s significantly accelerated its growth and brought its differentiated concept, high-quality food and exceptional customer service to new communities across the southern U.S.,” said Matt Ross, a managing director of Onex, in a statement.
Ross thanked Jack’s CEO Todd Bartmess and his management team for being great partners to Onex. “We wish them continued growth and success in the future,” Ross said.
Bartmess said Onex has given the regional chain the support to “invest in our people, technology and the growth of our brand.”
“They were steadfast in their commitment to the Jack’s family and the high standards we set. We’re grateful for Onex’ partnership over the years,” the CEO said in a statement.
Jack’s ranked No. 111 in the most recent Nation’s Restaurant News Top 200 census with an estimated $402.8 million in U.S. systemwide sales for this fiscal year ended December 2018, up 7.7% from $374.1 million in 2017. It ended 2018 with 162 units, up from 147 in 2017. The company’s restaurants are in Alabama, Tennessee, Mississippi and Georgia.
NRN research suggested that Jack’s restaurants have average annual sales per unit of about $2.6 million.