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Investment firm buys operator of 84 fast-food eateries in Hawaii, Pacific

Andrew Gomes

A collection of fast-food restaurants in Hawaii, Guam and Saipan has traded hands between two Los Angeles-based private equity investment firms, giving the operator of 84 mainly Taco Bell and Pizza Hut restaurants a third new owner in nine years.

Nimes Capital bought restaurant operator TD Food Group Inc. from Brentwood Associates on Wednesday. A purchase price wasn’t disclosed.

The sale includes 69 Hawaii restaurants — 38 Pizza Huts, 30 Taco Bells and one Long John Silver’s/A&W All American Foods — along with 14 restaurants in Guam and one in Saipan under the same brands.

No major changes are planned for the company, which employs roughly 2,000 people, according to Henry Katsuda, TD Food president and CEO. However, Katsuda said he expects Nimes to be a long-term owner.

"We’re very happy that they are what you would call a patient investor," he said. "We’re expecting a very good and solid long-term relationship."

Brentwood bought the restaurants in 2004 from Jardine Matheson Holdings Ltd., a Hong Kong company that was selling off the last pieces of the former Hawaii "Big Five" conglomerate Theo H. Davies & Co. Ltd. Jardine had owned Theo Davies since 1973.

Brentwood partnered with local Theo Davies management and Greg Dollarhyde, former president of Baja Fresh Mexican Grill, in its purchase that created TD Food.

Under Brentwood’s ownership, TD Food invested in operations that included opening new restaurants and buying six Taco Bells on Guam. However, TD Food has one fewer restaurant today than it did when Brentwood took over because some restaurants were closed.

Katsuda, who has been with TD Food and Theo Davies for a combined 30 years, said the restaurants have delivered a solid performance over the ups and downs of economic cycles.

Nimes is the private investment arm of Nazarian Enterprises, headed by David Nazarian. The company has investments in hotels, nightclubs, restaurants, renewable energy, manufacturing, technology and commercial and residential real estate.

Representatives of the firm could not be reached for comment Friday.

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