Private equity giant Blackstone (New York) said it has entered into a definitive agreement to acquire Tropical Smoothie Café (Atlanta), a franchisor of fast casual restaurants, from Levine Leichtman Capital Partners. Terms of the transaction were not disclosed by the partners, but a variety of published reports put the deal’s price tag at about $2 billion.
“Tropical Smoothie Cafe has had an impressive growth trajectory consistently building on its loyal customer base as it has scaled nationwide,” said Peter Wallace, a Senior Managing Director in Blackstone’s Private Equity business. “Blackstone has deep experience helping accelerate the expansion of leading franchise businesses as one of our highest-conviction investment areas. We believe our capital and resources will help position Tropical Smoothie Cafe for continued success and innovation for the benefit of its guests and franchisees.”
Said Tropical Smoothie Cafe CEO Charles Watson, “The key to this business is delivering an outstanding experience for each guest who walks through our doors. From high-quality products to exceptional guest service, our franchisees make our mission to become a beloved brand a reality day in and day out, and we are thrilled to see how the brand will continue to grow with Blackstone’s outstanding global resources behind it.”
Tropical Smoothie Cafe began operating as a single location on a beach in Destin, Fla., in 1997, and has since grown to have more than 1400 locations in 44 states.