By Abigail Summerville
NEW YORK (Reuters) - The private equity owner of Benihana Inc is exploring a sale that could value the U.S. restaurant chain, known for its Japanese teppanyaki and sushi, at around $600 million or more, including debt, according to people familiar with the matter.
The potential sale comes after Cava Group Inc's successful initial public offering buoyed investor sentiment in the restaurant sector, which took a beating during the lockdowns inflicted by the COVID-19 pandemic.
Shares of Cava, a Mediterranean restaurant chain, have more than doubled in value since it raised $318 million with its listing in New York last month.
Angelo Gordon & Co, which acquired Benihana for $296 million in 2012, is working with investment bank Piper Sandler Companies, on a sale process, the four sources said.
Beninaha generates 12-month earnings before interest, taxes, depreciation and amortization of around $60 million, the sources added.
The sources cautioned that no deal is certain and asked not to be identified because the matter is confidential.
Angelo Gordon, which agreed in May to sell itself to private equity firm TPG Inc for $2.7 billion, declined to comment. Representatives for Benihana and Piper Sandler did not respond to requests for comment.
Benihana has more than 100 restaurants under the Benihana, Ra Sushi and Samurai brands, including franchised Benihana restaurants in the United States, the Caribbean, Central America and South America.
The company's founder Hiroaki "Rocky" Aoki opened his first restaurant in New York City in 1964, featuring an authentic Japanese farmhouse interior and food prepared in front of customers on steel teppanyaki grills.
Buyout firms have shown an affinity for well-known restaurant franchises. Goldman Sachs Group Inc (NYSE:GS)'s private equity arm acquired a stake in chicken restaurant Zaxby's in 2020. Roark Capital-backed Inspire Brands Inc acquired Dunkin' Brands (NASDAQ:DNKN) Group Inc the same year for $11.3 billion.
Sandwich chain Subway's efforts this year to explore a sale have attracted the interest of several private equity firms, Reuters has reported.