American Securities Capital Partners, L.P. announced today it has signed a definitive purchase agreement to sell Irvine, California-based quick-service restaurant chain El Pollo Loco to Trimaran Capital Partners. The transaction, whose value was not disclosed, is expected to close during the fourth quarter of 2005.
American Securities Capital Partners, L.P. purchased El Pollo Loco from (then) Advantica Restaurant Group in December of 1999. “We partner with profitable and specially positioned companies and work with their management teams to generate long-term capital appreciation,” says Glenn Kaufman, managing director of American Securities Capital Partners, L.P. “El Pollo Loco has been a classic success story. Not only has the company been a very successful investment for us, our relationship with the El Pollo Loco team has given us the opportunity to work alongside the finest leaders in the restaurant industry.”
El Pollo Loco five-year same store sales growth has outpaced both the fast-casual and quick-service restaurant industry averages, and El Pollo Loco enjoys one of the highest per unit sales volumes in the quick-service restaurant segment. In the second quarter of fiscal 2005, which ended June 29, 2005, same-stores sales for the system, which includes sales from both company-operated and franchised restaurants, increased 9.4 percent.
El Pollo Loco President and CEO, Stephen E. Carley, reiterates the strength of his company’s nearly six-year relationship with American Securities. “We couldn’t be more pleased with our partnership with American Securities,” he says. “Their direction, guidance, and support have enabled us to significantly and dramatically improve virtually every aspect of the El Pollo Loco business.”
El Pollo Loco currently operates 328 restaurants: 139 are owned and operated by the company; 189 are owned by franchisees. The restaurants are currently located in four states- California, Arizona, Nevada, and Texas, with the first Chicago restaurant scheduled to open in mid-October, 2005. As part of its plans to expand nationwide, El Pollo Loco has a strong pipeline of company-owned and franchise restaurants in California, Colorado, New England, New Jersey, New York, Oregon, Texas, and Washington, D.C.