ATLANTA, Nov. 21 (UPI) -- Atlanta's Roark Capital Group has bought Schlotzsky's Ltd., a 35-year-old fast-food sandwich shop chain based in Austin, Texas.
Schlotzsky's has approximately 365 franchised and company-owned locations generating $210 million in yearly revenues throughout the United States and six foreign countries. The price of the deal was not revealed, Roark, the private equity arm of Focus Brands, said Tuesday in a news release.
Schlotzsky's, which has about 585 employees, was purchased out of bankruptcy court by Bobby Cox Cos. Inc. of Fort Worth, Texas, in 2004 for $28.5 million. As part of the Roark deal, Cox will join Focus Brands' board and reinvest some of the deal's proceeds in Focus Brands stock.
Focus Brands is the franchisor and operator of nearly 1,400 ice cream stores, bakeries, and cafes under the brand names Carvel, Cinnabon and Seattle's Best Coffee. With its acquisition of Schlotzsky's, Focus Brands has four franchise brands generating nearly $800 million in system-wide revenues through over 10,000 points of distribution in 50 states and 33 countries.