Jimmy John's sells to Atlanta private equity firm
Jimmy John's Sandwiches, a fast-casual restaurant once based in South Elgin, announced Thursday that it is selling a majority stake of the company to an Atlanta-based private equity firm.
Roark Capital Group, an Atlanta-based private equity firm that focuses on franchise and consumer brands, has signed a definitive agreement to acquire a majority interest in the company. Terms of the transaction were not disclosed.
There will not be any changes to management, as Liautaud will continue to help shape the company's strategic direction as chairman of the board of directors and will remain the single largest individual shareholder, while James North will continue to lead the day-to-day operations of the business as president and chief executive officer of the Champaign-based company.
"Jimmy has built an amazing business with unlimited potential," said Neal Aronson, managing partner of Roark.
Jimmy John's, which ranked No. 1 on Entrepreneur Magazine's 2016 annual Franchise 500 list, has more than 2,500 locations and $2 billion in systemwide sales.
Founded in 1983 by Jimmy John Liautaud, the brand has opened more than 200 locations in each of the last five years, with a new-unit pipeline of more than 1,100 locations to be opened over the next several years.
Liautaud started his business in Charleston at Eastern Illinois University. After graduating second to last in his high school class, Liautaud started his first Jimmy John's in 1983, at 19 years old, with a $25,000 loan from his dad.
Today, Jimmy John's is one of the fastest growing Quick-Service Restaurants in America with over 2,500 locations in 43 states.
Roark focuses on franchised and multiunit business models in the retail, restaurant, consumer and business services sectors.
Upon completion of the Jimmy John's acquisition, affiliates of Roark Capital will have invested in 56 franchise/multi-unit brands, which have generated $23 billion in annual system revenues from 25,000 locations in 50 states and 75 countries. Roark's current brands include Anytime Fitness, Arby's, Atkins Nutritionals, Batteries Plus Bulbs, Massage Envy and Primrose Schools.