Bain Capital in talks to buy Little Caesars operator Sizzling Platter, sources say

By Abigail Summerville

NEW YORK (Reuters) – Private equity firm Bain Capital is in talks to acquire Sizzling Platter, which operates restaurant franchises such as Little Caesars (NASDAQ:) and Jersey Mike’s, for more than $1 billion, including debt, people familiar with the matter said on Tuesday.

The Salt Lake City, Utah-based company, which also operates franchises including doughnut chain Dunkin’, chicken wings chain Wingstop (NASDAQ:) and juice bar chain Jamba, has been working with investment bankers at UBS and Deutsche Bank (ETR:) on a sale process for several months, the sources said.

Sizzling Platter expects to generate earnings before interest, taxes, depreciation and amortization of about $175 million this year, the sources said, requesting anonymity as the discussions are confidential.

Bain, UBS and Deutsche Bank declined to comment. Investment firm CapitalSpring, which currently owns Sizzling Platter, did not immediately respond.

Sizzling Platter operates more than 750 locations in the U.S. and Mexico for franchises such as Red Robin, Cinnabon and Sizzler. It launched in 1963 with one Sizzler location in Utah. It operates about 450 locations in the U.S. and Mexico for Little Caesars.

Private equity firms have traditionally been prolific acquirers of restaurant franchises, because such businesses generate steady royalty fees and are less expensive to operate.

In November, Blackstone (NYSE:) acquired sandwich chain Jersey Mike’s for $8 billion. Reuters reported in February that Flynn Group, the world’s largest franchisee operator of restaurants and fitness clubs, was exploring a sale.