09/2025100%LBO

Freddy’s acquired by Rhone Capital

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV $500M–1.5bn

Context

Rhône have acquired Freddy’s Frozen Custard & Steakburgers from Thompson Street Capital Partners, taking full control of the brand. The deal is structured as a full‑ownership transfer, with Thompson Street fully exiting its position after a roughly five‑year hold during which the chain grew from about 400 to over 550 units and significantly improved average unit volumes, digital capabilities, and franchisee support. Rhône, known for its transatlantic‑style, buy‑and‑build playbook in consumer and restaurant assets (including the earlier take‑private and subsequent sale of Fogo de Chão), intends to support Freddy’s expansion into new U.S. and international markets, build on existing franchise‑development momentum, and continue investing in innovation, operations, and digital guest experience.

By taking control of Freddy’s, Rhone Capital continues its expansion strategy. Previously, the group had completed 3 acquisitions, including Paragon Films in 2021.

Freddy’s, which reported an EBITDA margin of [members only] in 2024, is valued in this transaction at an EV/EBITDA multiple of 10x–18x.

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Target

Freddy’s Frozen Custard & Steakburgers is a U.S.‑based fast‑casual burger and frozen‑custard chain founded in 2002 in Wichita, Kansas, by brothers Bill and Randy Simon and their business partner Scott Redler. The concept is built around made‑to‑order steakburgers, shoestring fries, and freshly churned frozen custard, positioning itself in the “premium burger” segment rather than low‑end QSR. Freddy’s operates under a primarily franchised model, with a growing network of over 550 locations across the United States and Canada, generating more than USD 1 billion in system‑wide sales over the past year. The brand competes against mainstream burger chains but differentiates itself through a more upscale, quality‑driven menu and a family‑friendly, hospitality‑oriented in‑store experience. Under Thompson Street Capital Partners’ ownership (2021–2025), the company expanded from about 400 to over 550 units, improved average unit volumes, and invested in back‑of‑house systems, digital platforms, and franchisee support, including a dedicated training and innovation center in Wichita.

Ent. Value

$500M–1.5bn

Equity Value

[members only]

Multiples

EV / Revenue

below 1.5x

EV / EBITDA

10x–18x

EV / EBIT

[members only]

Historical Financials (USD)

Year

Rev

EBITDA

EBIT

2024

2023

Other operations with Rhone Capital

Other operations with Rhone Capital
Date	Acquirer	Target	Country	Sector
11/2021	RHONE CAPITAL	PARAGON FILMS	UNITED STATES	Plastic Packaging
11/2020	RHONE CAPITAL	ILLYCAFFÈ	ITALY	Beverages
02/2016	RHONE CAPITAL	GARDAWORLD SECURITY	CANADA	Security & Guarding

Similar deals in Hospitality & Leisure

Similar deals in Hospitality & Leisure
Date	Acquirer	Target	Country	Sector
10/2025	RACETRAC	POTBELLY CORPORATION	UNITED STATES	Restaurants / Chains
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09/2025	SPOON BRANDS	ROSSOPOMODORO	ITALY	Restaurants / Chains
09/2025	MCWIN CAPITAL PARTNERS	FLAT IRON	UNITED KINGDOM	Restaurants / Chains
08/2025	MONTEFIORE INVESTMENT / CERES INDUSTRIES CAPITAL / CFJ (COMPAGNIE FINANCIÈRE JOUSSET)	KARAVEL	FRANCE	Tour Operators
08/2025	L’OSTERIA	PIZZA PILGRIMS	UNITED KINGDOM	Restaurants / Chains
08/2025	FREEMAN SPOGLI	PHILZ COFFEE	UNITED STATES	Restaurants / Chains
06/2025	HYATT	PLAYA HOTELS & RESORTS	NETHERLANDS	Hotels & Accommodation
04/2025	PIPER	YARD SALE PIZZA	UNITED KINGDOM	Restaurants / Chains
04/2025	LEONARD GREEN & PARTNERS	CRUNCH FITNESS	UNITED STATES	Hospitality

REFERENCES

Valuation range: EV $500M–1.5bn

Revenue range: $500M–1bn

EBITDA range: $50–100M

EV/Revenue range: below 1.5x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Freddy’s by Rhone Capital are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: freddy’s

FAQ

What transaction does this page cover?

This page covers Rhone Capital’s acquisition of 100% of Freddy’s, an American company specialised in Hospitality, in 2025, structured as a leveraged buyout (LBO).

How was the acquisition of Freddy’s by Rhone Capital valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the $500M–1.5bn band, its EV/EBITDA multiple within the 10x - 18x range, and its EV/revenue multiple within the below 1.5x range. Exact figures are available to members.

What were Freddy’s’s revenue and EBITDA at the time of the deal?

At the time of the transaction, Freddy’s generated annual revenue estimated in the $500M–1bn range and EBITDA in the $50–100M bracket (FY 2024). Detailed financial figures are available to members.

What sources support the information on this transaction?

Data on this transaction was compiled from the official corporate announcement published by the parties, combined with independent reporting from specialized financial and M&A publications.

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