Sentinel sells Checkers and Rally's Restaurants in $525 million transaction

Leading Quick Service Restaurant Sees Meaningful Expansion in Store Footprint

NEW YORK, April 25, 2017 – Sentinel Capital Partners, a private equity firm that invests in promising, lower middle market companies, today announced the closing of its sale of Checkers and Rally's Restaurants, Inc. in an all-cash transaction valued at $525 million.

Checkers & Rally's Restaurants, Inc. is an iconic and innovative drive-thru restaurant chain with 850 restaurants and room to grow. Checkers & Rally's differentiates itself by delivering high quality, craveable meals at exceptional values. Checkers and Rally's, together with its outstanding franchisee partners, offers a distinctive menu focused on bold, innovative products that are delivered to guests with category-leading value.

"Since the beginning of our investment, it has been a great pleasure partnering with Checkers' exceptional, highly talented management team," said Michael Fabian, a Sentinel partner. "Over the past three years, Checkers' same-store sales have outpaced the hamburger QSR segment, and its store footprint has expanded by more than 10%. In addition, through important operational initiatives, store profit margins have improved steadily. Checkers is well-positioned to continue as a vibrant and successful franchise brand."

Rick Silva, President and CEO of Checkers, commented, "We are delivering record growth at Checkers and Rally's, and our franchisees, operators, and employees are more excited than ever about our future."

The past year has been highly productive for Sentinel. Besides exiting Checkers, Sentinel also recently announced its exit of Power Products, a leading global provider of branded electrical products and systems. And during the past year, Sentinel has made six new platform investments, including: Altima Dental, one of the largest dental services organizations in Canada; Cabi, a leading direct marketer of women's fashion apparel; The Luminaires Group, a leading North American manufacturer of specification-grade lighting products; Quick Weight Loss Centers, a multistate provider of highly differentiated weight loss management services; Revenew International, a leading provider of cost recovery and cost containment services; Revenew International, a leading provider of cost recovery and cost containment services; and Sonny's Enterprises, the worldwide leader in conveyorized car wash systems.