Z Capital Partners LLC is reportedly preparing to sell Famous Brands International, parent to the Mrs. Fields and TCBY brands, the Wall Street Journal reported Thursday.
The Lake Forest, Ill.-based private-equity firm, which in 2013 bought out Carlyle Group LP’s stake in Famous Brands, is reportedly working with Stifel Financial Corp. to solicit bids for Broomfield, Colo.-based Famous Brands, sources said.
Z Capital is unlikely to proceed with a sale if bids come in under the $175 million to $225 million range, sources told the Wall Street Journal.
A spokesman for Z Capital, which also has offices in New York City, told Nation’s Restaurant News that the company would not comment on the report.
Z Capital and Carlyle Group LP took over as majority stakeholders in Famous Brands after a January 2012 recapitalization.
Mrs. Fields, which specializes in cookies, was created by Debbi Fields in 1977, and the first location opened in Palo Alto, Calif. The brand now has about 300 units worldwide and sells products online.
TCBY, which stands for The Country’s Best Yogurt, opened its first location in Little Rock, Ark., in 1981. The frozen-yogurt brand now has more than 600 units worldwide.
In the past two years, Z Capital said Famous Brands was intent on expanding abroad. Last July, the company signed a franchise deal with a Dubai-based franchisee for 24 units in the United Arab Emirates.
Along with Famous Brands, Z Capital’s holdings include Cypress, Calif.-based Real Mex Restaurants Inc., which includes the Acapulco, Chevys Fresh Mex and El Torito brands.
In addition to those three core brands, Real Mex also includes Las Brisas Restaurant in Laguna Beach, Calif.; Sinigual in New York City; and El Paso Cantina in Torrance, Calif.
Earlier this week, Real Mex appointed a new CEO, former Tavistock Restaurants LLC president and CEO Bryan Lockwood.
Z Capital said it invests in middle-market companies that require growth capital or financial and operational improvements.
Contact Ron Ruggless at [email protected].
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