Blackstone (NYSE: BX) announced today that private equity funds managed by Blackstone (“Blackstone”) have completed the acquisition of Tropical Smoothie Cafe, a leading franchisor of fast casual restaurants, from Levine Leichtman Capital Partners. This marks the first transaction in Blackstone’s most recent vintage of its flagship private equity vehicle.

“Tropical Smoothie Cafe is a nationally recognized brand with an impressive growth trajectory underpinned by a base of loyal franchisees and guests,” said Peter Wallace, a Senior Managing Director, and Michael Staub, a Managing Director, in Blackstone’s Private Equity business. “With Blackstone’s capital and resources, we look forward to accelerating the Company’s continued expansion across the country and supporting innovation to further capitalize on the brand’s unique positioning.”

“By partnering with Blackstone, Tropical Smoothie Cafe will be able to Inspire Better® in more communities nationwide alongside our dedicated franchisees,” said Charles Watson, Chief Executive Officer of Tropical Smoothie Café, LLC. “2024 will be another big year in our growth trajectory, as we focus on operational excellence, menu innovation, and the digital guest experience.”

Blackstone’s investment in Tropical Smoothie Cafe is the most recent example of a number of leading franchisors the firm has partnered with to help propel their continued growth, including Hilton Hotels and SERVPRO. As part of this transaction, Nigel Travis, Former CEO of Dunkin’ Brands, will serve as Chairman of the Board for Tropical Smoothie Cafe.

Terms of the transaction were not disclosed. Barclays served as financial advisor and Simpson Thacher & Bartlett LLP served as legal counsel to Blackstone. Baird served as the lead financial advisor, with support from North Point and BofA Securities, and Kirkland & Ellis LLP served as legal counsel to Tropical Smoothie Cafe in connection with the sale.

About Tropical Smoothie Cafe®

Tropical Smoothie Cafe is a national fast-casual restaurant brand built on a mission to Inspire Better®, a commitment that starts with our better-for-you food and smoothies and extends to inspiring better in the communities we serve. Born on a beach in 1997, today Tropical Smoothie Cafe has more than 1,400 locations in 44 states. For the fourth year in a row, the brand was ranked #1 in the Smoothie/Juice Category by Entrepreneur Franchisee 500. For 11 consecutive years the brand has received the Franchise Times Fast and Serious award, and in 2024 the brand’s FUND Score was 905, one of the top scores for franchise concepts analyzed by FRANdata.

About Blackstone

Blackstone is the world’s largest alternative asset manager. We seek to deliver compelling returns for institutional and individual investors by strengthening the companies in which we invest. Our more than $1 trillion in assets under management include global investment strategies focused on real estate, private equity, infrastructure, life sciences, growth equity, credit, real assets, secondaries and hedge funds. Further information is available at www.blackstone.com. Follow @blackstone on LinkedIn, X (Twitter), and Instagram.

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