Financing

Old Chicago owner CraftWorks acquires Logan’s Roadhouse

The merger will create the latest multibrand restaurant company.
Photograph: Shutterstock

CraftWorks Restaurants & Breweries, owner of Old Chicago Pizza & Taproom and some brewery concepts, has acquired the 204-unit Logan’s Roadhouse, the company said on Thursday.

Logan’s CEO, Hazem Ouf, will lead the combined company, which will become the latest in a growing number of multibrand operators. The new company will be named CraftWorks Holdings and will operate 390 casual-dining restaurants and breweries in 40 states.

“I look forward to leveraging our combined capabilities to deliver unique and memorable dining experiences,” Ouf said in a statement. “We believe that our cumulative industry experience, the company’s extensive infrastructure, and the financial strength of our investors will allow us to drive excellence in service and quality within a scalable dining platform.”

Ouf has been the CEO of Logan’s since January 2017, shortly after Logan’s emerged from bankruptcy protection.

CraftWorks, meanwhile, operates Old Chicago, Rock Bottom Restaurant & Brewery, Gordon Biersch Brewery Restaurant, Big River Grille & Brewing Works and other brands. Based in Broomfield, Colo., the company is owned by the private-equity firm Centerbridge Partners.

Matt Kabaker, senior managing director of Centerbridge, called Ouf “an accomplished hospitality industry leader” with “an impressive track record of driving brand revitalization while delivering strong financial performance.”

The company also promised future acquisitions.

“By creating CraftWorks Holdings, we have laid the foundation for a premier restaurant and brewery holding company to provide long-term growth opportunities for our brands, team members and franchise partners and established a platform that is well-positioned for future growth and acquisitions,” Ouf said.

CraftWorks is now one of a number of companies that are buying midsized brands in the hopes that partnering will improve overall profitability. Food First Global Restaurants, for instance, emerged earlier this year after GP Investments bought Bravo Brio Restaurant Group.

High Bluff Capital Partners, meanwhile, acquired Quiznos and plans to pair that chain with others. Macaroni Grill just bought Sullivan’s. And the owner of El Torito and Chevys just changed its name to Xperience XRG, and it, too, wants to buy other brands.

Logan’s filed for bankruptcy in 2016 and emerged shortly thereafter after agreeing to a debt-for-equity swap with its lenders.

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