Rob Lauer in Law360: Zoe's Kitchen Shareholders To Offer $161M In Common Stock


Shareholders of private equity-backed Mediterranean restaurant company Zoe's Kitchen are selling $161 million, following a similar offering of $140 million in July and a highly successful IPO in April, as the company asserts itself in the growing fast-casual segment of the restaurant industry.

The selling shareholders didn't identify themselves, and the company will not receive the proceeds from this latest offering. The price per share has gone up since the July deal, pricing at $36.77 per share compared with $30.51 per share then.

Fast-casual restaurants like Zoe's, Chipotle and Panera don't offer full table service but market themselves as using higher-quality ingredients than fast food restaurants. According to Zoe's prospectus, it has a large number of restaurants featuring fast-casual Mediterranean cuisine in the U.S. — 130 establishments, up from 21 in 2008...

The deals were in part the result of an upswing in the commercial real estate sector in general, which is creating a greater opportunity and need for restaurants in or around new office, retail or mixed-use projects, according to Rob Lauer, a partner in Haynes and Boone, LLP's franchise and distribution group.

Excerpted from Law360, November 7, 2014. To view full article, click here (subscription required).

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