Border Holdings, LLC and Golden Gate Capital today announced that they have entered into a definitive agreement whereby Border Holdings, LLC will acquire the On The Border Mexican Grill & Cantina brand from Golden Gate Capital. Terms of the transaction were not disclosed. Border Holdings, LLC is an affiliate of Argonne Capital Group who is partnering with an affiliate of Fortress Investment Group, LLC on this transaction.
On The Border is the largest full-service Mexican restaurant brand in the country, offering a wide variety of Mexican favorites, with a focus on fresh, signature and value-oriented dishes, complemented by a full offering of alcoholic and non-alcoholic beverages. On The Border currently owns and operates 121 units across the U.S. The brand also franchises 36 units across the U.S., Puerto Rico, Saudi Arabia and South Korea.
“We see a tremendous amount of strength in the On The Border brand and are confident that the Company’s unique menu and atmosphere will appeal to a broad demographic as we look to expand this chain nationwide,” said Karl Jaeger, Managing Director at Argonne Capital Group. “We are excited to once again partner with Fortress in this transaction and look forward to supporting the Company’s existing management team in their on-going efforts to further enhance and grow the Company.”
“We are pleased with the outcome of our successful investment in On The Border and believe the Company is well-positioned for the future,” said Josh Cohen, Managing Director of Golden Gate Capital. “Argonne will be a great partner for On The Border as the Company enters its next chapter of growth, and we are confident the brand will continue to thrive under Argonne’s ownership.”
“We are extremely excited to partner with Argonne as we continue to successfully execute against our strategy,” said Steve Clark, CEO of On The Border. “We have enjoyed the strong support of Golden Gate Capital and look forward to working with our new partners.”
King & Spalding and McGuireWoods LLP advised Argonne Capital Group. Jefferies LLC served as financial advisor to On The Border and Golden Gate Capital. Kirkland & Ellis LLP served as legal adviser to Golden Gate Capital.