BUNKER HILL CAPITAL, NICK VALENTI AND JOACHIM SPLICHAL COMPLETE THE ACQUISITION OF THE SMITH & WOLLENSKY RESTAURANT GROUP
August 28, 2007
Bunker Hill Capital, L.P., together with Nick Valenti and Joachim Splichal, announced today that they have completed the acquisition of The Smith & Wollensky Restaurant Group, Inc. (NASDAQ: SWRG), pursuant to the agreement and plan of merger executed on May 6, 2007. An acquisition vehicle formed by the group acquired SWRG in a go-private transaction via an all-cash merger at a price of $11.00 per share.
Smith & Wollensky is the definitive premier steakhouse concept in the United States, and the acquired restaurants are located in Miami Beach, Chicago, Las Vegas, Washington, D.C., Philadelphia, Columbus, Houston and Boston. The group plans to expand to other major cities across the United States. Simultaneously with closing, Alan Stillman, the founder of SWRG, acquired from SWRG the Park Avenue Café and Quality Meats restaurants in New York City and the management rights to Smith & Wollensky in New York City, The Post House and Maloney & Porcelli. The Smith & Wollensky restaurant in New York City has been owned by a separate entity for approximately 30 years and will remain under that ownership.
Valenti and Splichal, who will operate the acquired restaurants, stated “We are excited about the acquisition and look forward to working with our partner, Bunker Hill Capital, to achieve our strategic plan for the business.” Valenti and the principals of Bunker Hill Capital have had a relationship dating back to 1996, and Valenti is a member of Bunker Hill Capital’s Executive Council.
According to Theresa Nibi, a Managing Partner at Bunker Hill Capital, “We look forward to our partnership with Nick and Joachim, who have a long and successful track record of managing and growing restaurant concepts. Smith & Wollensky is one of the most widely recognized and highly regarded restaurant brands in the United States, and we are excited about the opportunity we have to expand the concept by opening new locations in cities across the country.”
Nibi’s sentiments were echoed by Mark DeBlois, also a Managing Partner at Bunker Hill Capital. “This opportunity represents an ideal investment for our firm. The company has a superior brand name, and the management team will be instrumental in enhancing value at the existing locations as well as accelerating growth through the opening of new units. We look forward to working closely with Nick and Joachim to achieve our strategic goals.”
About The Smith & Wollensky Restaurant Group
The Smith & Wollensky Restaurant Group develops and operates high-end, high-volume restaurants in major cities across the United States. As a traditional New York style steakhouse, beef is the cornerstone of each restaurant’s menu, concept and reputation. Smith & Wollensky is one of the few national steakhouses that invests in dry aging and hand butchering USDA Prime beef on premises in each restaurant across the country to ensure unparalleled quality, tender texture and outstanding flavor. Each Smith & Wollensky restaurant offers distinctive high quality food, creative menus, an extensive wine selection and exceptional customer service accompanied by attractive design and décor. The company’s restaurants are located in Miami Beach, Chicago, Las Vegas, Washington, D.C., Philadelphia, Columbus, Houston and Boston. For more information on The Smith & Wollensky Restaurant Group, please go to www.smithandwollensky.com.
About Bunker Hill Capital, L.P.
Bunker Hill Capital is a private equity firm that makes investments in lower middle market companies with enterprise values up to $150 million. The principals of Bunker Hill Capital have together invested over $400 million in 28 transactions and target opportunities across four industry sectors, including industrial products, business services, consumer products and specialty retail. Bunker Hill Capital’s other portfolio company investments include California Family Fitness, the leading owner and operator of fitness centers in the greater Sacramento, CA area; Papa Gino’s/D’Angelo, a dominant quick-service restaurant operator in New England; and Specialty Coating Systems, the world's leading supplier of high-performance Parylene conformal coating solutions for the medical, electronic and automotive markets. For more information on Bunker Hill Capital, please go to www.bunkerhillcapital.com.
