Nautic Partners, LLC, a private equity firm with more than $1.8 billion of capital under management, today announced that it has sold its investment in Skyline Chili to an investor group composed of Company management and Prudential Capital Partners, LP. Terms of the transaction were not disclosed.
Cincinnati-based Skyline Chili is a regional chain of 135 franchised and company-owned restaurants that specialize in Cincinnati-style chili. With restaurants in Ohio, Indiana, Kentucky, Michigan, and Florida, Skyline Chili also sells branded grocery products.
“Skyline Chili is a strong regional brand with an exceptionally loyal customer base, diverse revenue stream, and attractive cash flow characteristics,” said Bernie Buonanno, a Managing Director of Nautic. “During the term of our investment, the Company’s value increased substantially due to the leadership of an excellent management team which achieved growth in existing and new markets.”
Kevin McDonnell, Skyline Chili President and Chief Executive Officer, said, “Nautic was always a supportive business partner who provided fresh thinking. We enjoyed our partnership with Nautic and now look forward to a new phase in the growth of the business.” The sale of Skyline Chili represents a 3.1x return on invested capital yielding a 25% IRR for Nautic.