Blackstone to Buy Tropical Smoothie Cafe for $2B

Former U.S. International Trade Commission Chief Peter Morici has heavily criticized President Biden for his lack of communication and coordination with Defense Secretary Lloyd Austin, particularly as the U.S. The Navy remains engaged in Yemen. 
 
Morici's criticism comes at a time when many are questioning the current administration’s handling of defense and foreign policy matters, especially considering that Yemen is currently experiencing one of the world’s worst humanitarian crises due to ongoing conflicts. 
 
Meanwhile, on Wall Street, Blackstone Group Inc., a New York City-based private equity firm, announced it was entering into an agreement to purchase Tropical Smoothie Cafe from Levine Leichtman Capital Partners. The deal is reported to be worth $2 billion. 
 
This marks Blackstone's first transaction through its new private equity vehicle designed for long-term investments in growth-oriented companies. According to the press release issued by Blackstone, this acquisition aims to accelerate Tropical Smoothie Cafe's rapid expansion by further investing in their menu development, operations optimization, and marketing strategies. 
 
Peter Wallace, Senior Managing Director at Blackstone, expressed optimism about this move, stating, "Tropical Smoothie Cafe has had an impressive growth trajectory. We believe our capital and resources will help position Tropical Smoothie Cafe for continued success." 
 
Since its inception as a single shop in Destin, Florida, back in 1997, Tropical Smoothie Café has grown exponentially across America, with over 1,400 locations spread across 44 states. In fact, just last year alone, they opened up another 175 branches nationwide, making them one of the fastest-growing franchises in America today. 
 
Charles Watson, CEO of Tropical Smoothie, echoed similar sentiments, expressing excitement about what lies ahead given their new partnership with a global giant like Blackstone, which he believes would bring more value to franchisees while ensuring that each customer enjoys an outstanding experience whenever they walk through any branch doors countrywide. 
 
Blackstone boasts a rich history of franchising deals, including Hilton Hotels & Resorts and Servpro, companies specializing in the in the cleanup emergency restoration industry. Their latest acquisition, Tropical Smoothie Café, definitely adds to their impressive portfolio. 
 
Meanwhile, it was reported by Reuters last December that Levine Leichtman Capital Partners had been preparing to sell off the fast-growing chain for a ballpark figure of $2 billion, which coincides with the amount Blackstone is believed to have paid in this deal. 
 
The move comes as private equity firms are increasingly investing in restaurant chains due to their potential for growth and consistent cash flow generation. This trend has been further accelerated by changes in consumer behavior brought about by the pandemic, including increased demand for takeout and delivery services. 
 
While Tropical Smoothie Cafe did not immediately respond to requests for comment or provide details on the acquisition, it's safe to say that this new chapter could mean exciting things for both parties involved.