Five bidders, a mix of strategics and financial investors, are vying for the company, one person said. Houlihan Lokey is advising. The auction began one month ago, the source said.
One banker said the sale of Tony Roma’s is a small deal. The company has less than $20 million EBITDA, the banker said. A strategic is expected to acquire Tony Roma’s, the first source said.
Tony Roma’s, of Dallas, is a casual dining chain known for its barbecued ribs. It has 200 restaurants spread through 17 states and 33 countries. Tony Roma’s filed for bankruptcy protection in November 2005. It exited the following March.
Highland Capital, also of Dallas, is an investment firm with $22 billion in assets under management. The firm acquired Tony Roma’s after it emerged from Chapter 11 five years ago.
Tony Roma’s is the latest restaurant chain to go up for sale. Morton’s Restaurant Group, in March, hired Jefferies & Co. to look at strategic options, including a sale. Chicago-based Morton’s is known for its expensive steaks and has $24 million EBITDA.
The Bojangles auction is in “mid-process,” a separate source said. The sale has generated much interest and a deal could be concluded by the end of June, the person said. No party is in the lead, the source said.
Highland Capital officials couldn’t be reached for comment by deadline.
Luisa Beltran is a senior writer for peHub, a sister Web site to Buyouts.