Sentinel Capital Partners acquires Newk's Eatery

Experienced Restaurant and Franchising Investor Adds Premier Fast Casual Dining Franchise

NEW YORK, March 24, 2014 – Sentinel Capital Partners, a private equity firm that invests in promising companies in the lower end of the middle market, today announced the closing of its acquisition of Newk’s Holding Company, LLC, owner and operator of the Newk’s Eatery franchise. Terms of the purchase agreement were not disclosed. Arlington Capital Advisors served as financial advisor to Newk’s.

Newk’s is a rapidly growing market leader in the fast casual restaurant segment with a diverse menu of high quality, made-from-scratch sandwiches, soups, salads, and pizzas. The Newk’s Eatery system consists of 67 restaurants located in the Southeast.

Chris Newcomb, CEO and co-founder of Newk’s Eatery, commented, "Sentinel is a perfect strategic partner whose deep experience and success in supporting high growth restaurant and franchising businesses will allow Newk’s to realize its full potential."

The acquisition of Newk’s Eatery adds to Sentinel’s extensive franchising experience. Since its inception, Sentinel has completed eight similar transactions including Border Foods, a leading franchisee in the Taco Bell system; Checkers/Rally’s, the largest franchisor and operator of dual drive-thru hamburger QSRs in the U.S.; Cottman Transmission Systems, the nation’s second-largest franchisor of transmission repair depots; Falcon Holdings, the largest franchisee of Church's Chicken restaurants; Huddle House, a leading franchisor of family dining restaurants in the Southeast; Interim Healthcare, the nation's largest franchisor of home-based healthcare services; Massage Envy, the nation’s largest provider and franchisor of therapeutic massage and spa services; and Southern California Pizza Company, a 223-unit Pizza Hut franchisee operating in the greater Los Angeles market.