EXCLUSIVE-Jimmy John's Gourmet Sandwiches chain weighs stake sale -sources

[September 13, 2014]  By Greg Roumeliotis and Olivia Oran
 
 NEW YORK, Sept 12 (Reuters) - The Jimmy John's Gourmet Sandwiches chain is considering selling a major stake in the company and has hired boutique investment bank North Point Advisors to advise on a potential deal, according to people familiar with the matter.

Jimmy John's, founded in 1983 by 19-year old Jimmy John Liautaud in a converted garage, is in the early stage of preparing a sale process, the people said. It remains unclear how big a stake the Champaign, Illinois-based company will eventually offer potential investors.

A deal, which could include private equity firm Weston Presidio's minority stake as well as part of Liautaud's position in the company, is expected to value the restaurant chain at a few billion dollars, the people said. They requested anonymity because the matter is not public.
 

Weston Presidio acquired a 33 percent stake in Jimmy John's in 2007. The company has completed two recapitalizations since the buyout firm's investment.

Representatives of Jimmy John's, North Point Advisors and Weston Presidio did not immediately respond to requests for comment.

Jimmy John's had systemwide revenue of about $1.3 billion in 2013, according to an estimate from Nation's Restaurant News.

The company has 2,000 locations, most of which are franchised, in more than 40 states and the District of Columbia.

Liautaud attracted political scrutiny in 2011 after threatening to move his company's headquarters from Illinois to a more tax-friendly state. He has also faced backlash from the Industrial Workers of the World, which has campaigned to unionize Jimmy John's workers, citing low wages and unpredictable shifts. (Reporting by Greg Roumeliotis and Olivia Oran in New York; Editing by Lisa Von Ahn)

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