Situation
eatZi’s Market & Bakery was an innovative specialty retailer that provided convenient, chef-prepared, restaurant quality home meal replacement solutions.  eatZi’s had $56 million in revenues at the time of the transaction and operated four retail locations. eatZi’s founder, Phil Romano, who also founded Fuddruckers, Romano’s Macaroni Grill and Cozymel’s, and his management team sought to acquire Brinker International’s (NYSE: EAT) interest in the company.

Objective
Working under a very tight timetable, Matrix sought to negotiate, structure and close the MBO of eatZi’s while simultaneously securing a financial investor that could fund an aggressive store roll-out of the eatZi’s concept nationwide.

Solution
Matrix contacted 56 investors; sent out 29 Confidential Information Memoranda (“CIM”) and received 8 preliminary bids.

Castanea Partners, a Boston-based private equity sponsor with significant retail experience, was selected to complete the transaction.

Matrix closed the transaction largely on the terms proposed. The MBO was completed in roughly three months and growth capital was secured to finance eatZi’s aggressive store roll-out plan.

Matrix co-invested in this transaction.