Colony Capital takes majority stake in Buffalo Grill

Colony Capital, in partnership with its joint-venture fund Colyzeo, executed a leveraged buyout of the French steakhouse chain, Buffalo Grill. The transaction involved acquiring a controlling stake from the company's founder, Christian Picart, with the ultimate goal of delisting the company from the Eurolist C exchange and taking it private. This move concluded a lengthy sale process that had been active for approximately eighteen months, with Colony Capital's proposal prevailing over competing offers from other private equity firms such as Alpha, Advent, and Change Capital. The acquirers' rationale was driven by several key factors: the strength and appeal of the restaurant's brand concept, its significant, unrealized potential for international expansion, the substantial value of its underlying real estate assets, and the perceived solidity of its management team. The acquisition followed a period where Buffalo Grill had successfully overcome operational difficulties and demonstrated a strong business recovery. The new capital structure, supported by a significant long-term loan, was designed to provide the restaurant group with the necessary financial resources to restart its growth strategy, with a particular emphasis on expanding its presence outside of its core French market.