Investment company Rhône Group has agreed to acquire the US restaurant chain Freddy's Frozen Custard & Steakburgers for $700m, inclusive of debt, as reported by Reuters.

Freddy's, based in Wichita, Kansas, was established in 2002 by brothers Bill and Randy Simon and their business partner Scott Redler, and is named after their father.

The chain currently operates more than 500 locations across North America, primarily competing against hamburger chains, with a majority of its outlets run by franchise partners.

In November 2024, Reuters reported that Thompson Street Capital Partners, which purchased Freddy's from its founders in 2021, is collaborating with investment bank William Blair on the sale.

St Louis-based Thompson Street Capital Partners focuses on mid-sized, founder-led businesses and manages $4.5bn in assets.

Investment bank North Point has also provided advisory services for the transaction.

Founded in 1996 by former bankers from Lazard and Goldman Sachs, Rhône Group manages $10bn in assets and invests in the consumer, business services and industrial sectors.

The firm took Brazilian restaurant chain Fogo de Chão private in 2018 and sold it to Bain Capital in 2023 for $1.1bn.

Since 2017, Rhône has been an investor in Saks Fifth Avenue's parent company, HBC, which acquired department-store chain Neiman Marcus in 2024.

In June of the same year, Freddy’s Frozen Custard & Steakburgers signed a 20-unit development deal in Houston, Texas.

The expansion was spearheaded by franchise group Lone Star Custard, led by siblings John, Nick and Joe DePinto.