Tilman Fertitta launches another Blank Check IPO

Tilman Fertitta is launching another Blank check company, Landcadia Holdings II, that is proposing to raise $250 million through an Initial Public Offering (IPO).

Currently Mr Fertitta owns 51.7% of Landcadia II through Fertitta Entertainment, Inc (FEI) with the remaining amount owned by Jefferies, an investment banking firm.

FEI has revenues of over $4 billion. It owns 500 restaurants such as Morton’s, McCormick & Schmick, Saltgrass Steakhouse and Rainforest Cafe. It also owns Golden Nugget Casinos in Las Vegas and other locations. Other assets owned by FEI include the Houston Rockets (acquired for $2.2 billion), the Post Oak Hotel in Houston and the Kemah Boardwalk.

Landcadia I acquires Waitr

The same duo launched a similar IPO nearly 3 years ago. Landcadia Holdings (Landcadia I) went public after raising $250 million.

In November 2018, Landcadia I acquired Waitr Holdings for $308 million. Waitr is based in Lake Charles and specializes in online delivery from local restaurants to at-home customers. It primarily serves secondary markets and has a current market capitalization of $769 million. It recently acquired BiteSquad.com for $321 million. Mr Fertitta still owns 7.3% of Waitr.  After its acquisition, Waitr partnered with the various restaurant chains in the FEI group to drive revenue growth.

Blank Check companies

A blank check company, also called a SPAC (Special Purpose Acquisition Company) is a publicly listed company with no operations that raises money from investors for acquisitions via an IPO.

According to the S-1 filing, Landcadia II intends to focus on ‘business combination targets in the consumer, dining, hospitality, entertainment and gaming industries including technology companies operating in these industries.’ The words in italics are my emphasis as it represents a change from the wording used in the filing for Landcadia I.

There are two other publicly-traded blank check companies based in Houston. Graf Industries went public in October 2018. Sentinel Energy went public in November 2017 but recently called off its merger with Strike LLC.

SEC filing – Landcadia Holdings II

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