PALO ALTO, Calif. and GRAPEVINE, Texas, Feb. 13, 2015 /PRNewswire/ -- Altamont Capital Partners (Altamont) today announced that it has acquired Cotton Patch Cafe, LLC (Cotton Patch), a scratch-made Southern food restaurant concept with 45 locations in Texas, Oklahoma and New Mexico.
Commenting on the transaction, Cotton Patch's founders, Larry Marshall and Michael Patranella, who opened the company's first location in 1989, said, "The idea behind the first Cotton Patch Cafe was to create a local restaurant that offered great food made from scratch, served by caring folks who are part of your community. That culture still holds true 25 years later and we are confident that Altamont is the right partner to help bring it to many more communities in the future."
Cotton Patch CEO Kathy Nelson, who previously held leadership positions at Pizza Hut, Pillsbury, and General Mills, will continue to lead the business and invested alongside Altamont in the transaction. "We look forward to building on Cotton Patch's strong legacy and see attractive opportunities to expand the concept both in existing and adjacent markets. We believe there are many customers that would appreciate our quality, scratch-made Southern food offered at a value price," Kathy said, commenting on the deal. "Altamont's experience in the restaurant industry will be a great resource in helping us execute the company's plans. The team is aligned with our culture and values and we are excited to partner with them going forward."
Echoing that sentiment, Jonathan Altman, Principal of Altamont, said, "Cotton Patch has been successful through its focus on value, high-quality food, Southern hospitality and the local community around each restaurant. We are excited to build upon that success and support the management team throughout the company's next phase of growth."
"We are thrilled to expand our restaurant portfolio to include Cotton Patch," added Altamont Managing Director Randall Eason. "We look forward to the opportunity to contribute to the company's continued success."
Piper Jaffray & Co. and Locke Lord LLP advised Cotton Patch while Ropes & Gray LLP advised and represented Altamont.
About Altamont Capital Partners
Altamont Capital Partners is a private investment firm based in the San Francisco Bay Area with over $1 billion of capital under management. Altamont is focused on investing in middle market businesses where it can partner with leading management teams to help its portfolio companies reach their full potential. The firm's principals have significant experience building business success stories across a range of industries including financial services, government services, consumer/retail, industrials and healthcare. The firm has led several restaurant brand investments, including Tacala, the largest franchisee of Taco Bells in the U.S., and Boom Foods, a leading operator of Sonic Drive-Ins. Altamont also recently appointed K.C. Moylan as its Operating Partner focused on investments in the restaurant sector.