Jack's Family Restaurant

BIRMINGHAM, AL—Toronto's Onex Corp. has agreed to sell the locally-based Jack's Family Restaurants. The transaction is expected to close in the third quarter of 2019 subject to customary closing conditions and regulatory approvals.

Today, the has more than 145 locations in Alabama, Tennessee, Mississippi and Georgia.

The terms of the transaction were not disclosed, however Onex did reveal some telling details about the portfolio's financials. When the transaction closes, Onex expects to have received proceeds of approximately $835 million, including prior distributions of $106 million. The company acquired Jack's in July 2015 for a total equity investment of $234 million. The result is a gross multiple of invested capital of 3.6 times and a 38% gross rate of return. Also, Onex invested $79 million in Jack's as a limited partner in Onex Partners IV and will realize $255 million upon completion of the transaction, including prior distributions of $31 million.

“Over the course of our investment, Jack's significantly accelerated its growth and brought its differentiated concept, high-quality food and exceptional customer service to new communities across the southern US, said Matt Ross, a managing director of Onex, in prepared remarks.