Generational Equity Advises The RM Restaurant Group in its Sale to Xperience Restaurant Group

By Generational Group

03/07/2023

Generational Equity, a leading mergers and acquisitions advisor for privately held businesses, is pleased to announce the sale of its client The RM Restaurant Group to Xperience Restaurant Group, a portfolio company of Z Capital Partners LLC, the private equity fund management arm of Z Capital Group LLC (“ZCG”). The transaction closed February 27, 2023.

The RM Restaurant Group (dba Rio Mambo Tex Mex y Mas and THE RIM scratch craft) is a collection of six restaurants, across two restaurant concepts, in Fort Worth, Texas and surrounding areas. Rio Mambo Tex Mex y Mas, with four separate locations, provides an ingredient-driven menu in a contemporary setting. THE RIM scratch craft serves ‘food with soul, and a side of vibe’ and features an eclectic interior and great music.

The Company offers excellent service to clients with a high level of quality ingredients, which drives word-of-mouth referrals and repeat business from customers. Historically, the Company received a large portion of its sales through repeat business, which is responsible for generating approximately 80% of total revenue.

The primary means for expanding its customer base are the Company’s community engagement, advertising and marketing initiatives, outstanding reputation, and positive word-of-mouth referrals from existing clients. Additionally, RM also maintains two websites, www.riomambo.com  and www.therimrestaurant.com.

Xperience Restaurant Group (XRG) is a leading casual and fine dining operator having iconic brands that serve unique experiences, great food, and unparalleled beverage offerings. Through its bold leadership, innovation, and brand development, XRG has transformed the U.S. Mexican dining landscape with its origination of Taco Tuesday, tableside presentations, and pioneering cocktail program.

For over 65 years XRG’s brands have become synonymous with being the best-in-category with recent accolades including Best Mexican Restaurants, Best Taco Tuesday, and Best Happy Hours in various media outlets throughout the country. XRG currently operates 68 restaurants, including El Torito, El Torito Grill, Chevys Fresh Mex, SOL Mexican Cocina, Solita Tacos & Margaritas, Acapulco, Las Brisas, Sinigual, and Who Song & Larry’s.

ZCG is a leading, privately held merchant bank comprised of private markets asset management, business consulting services, technology development and solutions. For almost 30 years, ZCG Principals have invested approximately $26 billion and have industry-leading track records in private equity and credit. In Asset Management, ZCG has approximately $6.5B of AUM and its investors are some of the largest and most sophisticated global institutional investors, including pension funds, endowments, foundations, sovereign wealth funds, central banks, and insurance companies. ZCG has a global team comprised of over 375 professionals.

“To find a group whose culture so closely aligned with ours, and who is passionate about expanding our concepts while keeping all of our leadership intact is nothing short of a miracle. My family feels truly blessed,” said Brent Johnson, Founder and President of The RM Restaurant Group.

“With its rich heritage, authentic flavors, and loyal customer base, this acquisition aligns perfectly with our growth strategy and commitment to providing our guests with the best dining experiences,” said Randy Sharpe, CEO of XRG. “We are excited to welcome the talented team behind this group and look forward to building on its success in the years to come.”

Generational Equity Executive Managing Director of M&A Central Region, Michael Goss, and his team, led by Vice President, M&A, Jacob Mangalath, with the support of Vice President, M&A, Lance Thomasson, successfully closed the deal. Senior Managing Director Doug Morrow established the original relationship with The RM Restaurant Group.

“Brent Johnson built these brands on one foundational theme, “Relationships Matter”. All of the restaurants exemplify this perfectly and have become staples in the communities they serve,” said Mangalath.

Mangalath added, “We are very blessed to have found the perfect buyer who shares these same values. Backed by ZCG, Xperience Restaurant Group has the experience, talent, and resources to take Rio Mambo and the RIM across the country.”