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New York City-based private equity firm Blackstone announced Wednesday that it has entered into a deal to acquire Tropical Smoothie Cafe for $2 billion.
Blackstone said in a press release that it has entered into an agreement with Levine Reitman Capital Partners to acquire Tropical Smoothie Cafe. According to a release, this is the first transaction from Blackstone’s private equity vehicle and will accelerate the already rapid expansion of the franchise by continuing to invest in the company’s menu, operations and marketing. It is intended to.
“Tropical Smoothie Cafe is on an impressive growth trajectory, steadily building a loyal customer base as it expands nationally,” said Peter Wallace, Blackstone’s senior managing director of private equity. ” “Blackstone has extensive experience helping major franchise businesses accelerate their expansion, one of our most confident investment areas. We believe this will help lead Tropical Smoothie Cafe to continued success and innovation for profit.”
A person close to the deal said Blackstone would buy the company for “nearly $2 billion.”
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Blackstone Group Headquarters in Manhattan, New York (Reuters/Andrew Kelly/Reuters Photo)
Tropical Smoothie began in 1997 as a single store in Destin, Florida and is known for its variety of smoothies and foods.
The franchise has expanded to more than 1,400 stores in 434 states. In 2023 alone, Tropical Smoothie opened 175 new stores, more than two-thirds of which were opened by existing franchisees.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| BX | Blackstone Co., Ltd. | 123.76 | -0.46 | -0.37% |
Tropical Smoothie CEO Charles Watson said in a release: “The key to this business is providing a great experience for each guest who walks through our doors.” “From quality products to exceptional guest service, our franchisees deliver on our mission to be a beloved brand every day, and Blackstone’s unparalleled global resources help them grow. I’m excited to see how it continues.”
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Blackstone is expected to pay nearly $2 billion for Tropical Smoothie Cafe, according to people close to the deal. (Laura Karchev/Getty Images/Getty Images)
Tropical Smoothie did not immediately respond to Fox News Digital’s request for comment or details about the acquisition.
Blackstone’s previous franchise agreements include Hilton Hotels and Servpro, which specializes in the cleaning and emergency recovery industry.
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Reuters reported in December that Tropical Smoothie’s private equity owner, Levine Reitman Capital Partners, was preparing to put the chain up for sale for about $2 billion.
Reuters contributed to this report.
