BDT Capital Partners Acquires Whataburger Majority Stake

BDT Capital Partners made a significant move in the fast-food industry by acquiring a majority stake in Whataburger, a beloved Texas-based burger chain.

This acquisition was a major deal, with BDT Capital Partners purchasing a majority stake in Whataburger, a company that has been a staple in Texas for over 70 years.

BDT Capital Partners is a private investment firm that specializes in investing in middle-market companies, and this acquisition was a strategic move to expand their portfolio.

With this acquisition, Whataburger will continue to operate independently, but with the financial backing of BDT Capital Partners.

The deal was completed in 2021, marking a new chapter for Whataburger as it expands its reach and growth.

BDT Capital Partners has a proven track record of investing in successful companies, and this acquisition is a testament to their expertise in the industry.

BDT Capital Partners is taking over Whataburger, and it's a big deal. The company, founded in 2009 in Chicago, has billions in assets, with more than $12 billion as of 2018.

BDT Capital Partners was founded by Byron Trott, who has been publicly praised by Warren Buffett. Trott's company specializes in family and founder-led companies.

Whataburger's new partnership with BDT Capital Partners will allow the company to explore expansion plans beyond Texas. The transaction is expected to close later this summer.

The founding Dobson family will keep a minority position on the board, while Whataburger's Chief Financial Officer Ed Nelson will become president. Nelson joined Whataburger in 2004 as controller.

The company's headquarters will remain in San Antonio, and Whataburger's leadership team will partner with BDT Capital Partners to begin exploring expansion plans.

Whataburger's new leadership team is set to take the reins from 1 July, with Ed Nelson being promoted to the role of president, replacing his current position as chief financial officer and controller.

The company has also appointed Leonard Mazzocco as senior vice-president and chief operating officer, effective from 1 July.

Rob Rodriguez will assume the role of senior vice-president and chief restaurant operating officer, while James Turcotte continues in his role as real estate segment senior vice-president and is promoted as chief development officer.

Morgan Stanley and Ernst & Young (EY) served as transaction advisors to Whataburger, working closely with the company to facilitate the transaction.

BDT Capital Partners received legal advice from Norton Rose Fulbright to support their involvement in the transaction.

The transaction is subject to customary regulatory and other conditions, with financing support from Morgan Stanley Senior Funding, expected to close later this summer.