Portfolio Company Doubles in Size and Is Well Positioned For Future Growth

Stamford, CT – Saugatuck Capital Company (“Saugatuck”), a leading private equity firm investing in lower, middle-market growth companies, announced today the closing of a significant add-on acquisition for Waterloo Restaurant Ventures (“Waterloo”), a Romano’s Macaroni Grill (“Macaroni Grill”) franchisor and operator. As part of the transaction, Waterloo acquired four additional Macaroni Grill restaurants — all located in the San Francisco Bay area — as well as the development rights for an additional 11 stores in the region.

Waterloo became the first domestic franchise partner for the Macaroni Grill brand of Brinker International, Inc. (“Brinker”) in 2003, by acquiring the development rights for the Pacific Northwest, and one existing Macaroni Grill store located in Boise, Idaho. Waterloo has since opened four highly successful restaurants in Portland and Seattle. Saugatuck is the control shareholder in Waterloo, and continues to support the company’s rapid growth with co-investor Crates Thompson Capital of Fort Worth, Texas.

Christopher Wright, a Managing Director at Saugatuck and partner focused on the Waterloo investment, noted, “This transaction doubles the size of Waterloo, opens a highly attractive market for additional development, and compliments Brinker’s campaign to accelerate growth of this important brand, bottom line is that it is a great deal for all.”

“Waterloo Restaurant Ventures is excited to expand our partnership with Brinker and strengthen market penetration of the Macaroni Grill brand in the Pacific Northwest and California Bay area,” said Barry McGowan, CEO and President of Waterloo Restaurant Ventures. “Our team of experienced casual dining operators combined with Brinker’s support and operations infrastructure will be the recipe for our success.”

About Saugatuck Capital Partners
Founded in 1982, Saugatuck Capital Partners is a long-established private equity firm committed to buyout and growth equity investments in the lower-middle market. In partnership with management, Saugatuck invests in profitable, well-established, service-intensive businesses where it has the requisite experience and expertise to drive portfolio company performance improvements. Sourcing investment opportunities through an unparalleled set of contacts, Saugatuck takes a hands-on approach to value creation, leveraging capital and exceptional senior talent to assist portfolio companies realize their potential. Additional Saugatuck investments include: Floor & Décor, an outlet retailer of hard surface flooring; MedImaging, Inc., an operator of multi-modality, outpatient diagnostic imaging centers; and American Pipe and Plastics, Inc., a manufacturer of polyvinyl chloride (PVC) conduit. For more information about the firm and its portfolio companies, please visit www.saugatuckcapital.com

About Waterloo Restaurant Ventures
Waterloo Restaurant Ventures is a restaurant franchisor and operator of Romano’s Macaroni Grill. The company has development rights for the Pacific Northwest and the San Francisco Bay Area. Waterloo was founded by CEO and President Barry McGowan, a former Brinker employee and 20-year restaurant industry veteran. The company was funded by Saugatuck Capital and Crates Thompson Capital in 2003. Waterloo’s corporate headquarters is located in Vancouver, Washington.