An affiliate of Roark Capital Group has entered into a definitive agreement to acquire a majority stake in CKE Inc with senior management retaining a minority stake.
CKE is currently majority-owned and controlled by investment funds affiliated with Apollo Global Management.
Terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter of 2013, subject to regulatory approvals and other customary closing conditions.
Headquartered in Carpinteria, California, CKE, through its subsidiaries, owns, operates and franchises some of the most popular brands in the quick-service restaurant industry, including the Carl’s Jr, Hardee’s, Green Burrito and Red Burrito restaurant brands. The CKE system includes 3,400 restaurants in 42 states and in 29 countries and US territories worldwide generating approximately USD3.9bn in system revenues.
“Roark is thrilled to partner with CKE’s A+ management team led by Andy Puzder, and be associated with these differentiated brands and their engaged and successful franchisees and employees,” says Neal Aronson, Roark’s managing partner.
“We’re looking forward to our long-term partnership with Roark Capital Group. Their proven track record of success and deep expertise in the restaurant and franchise sectors will be very beneficial as we continue to grow and expand CKE’s market-leading brands around the world,” says Andy Puzder, CKE’s chief executive officer. “The entire senior management team of CKE is very excited about having Roark Capital's support in continuing to build the Company’s world-class quick service restaurant organisation.”
“We would like to thank the CKE management team, led by Andy Puzder, as well as all of the company’s employees, franchisees and licensees for their dedication and commitment during our fund’s ownership to execute a business strategy that has built substantial value at CKE. We are fortunate to have had the opportunity to partner with such an outstanding organisation,” says Peter P. Copses, CKE’s chairman and a senior partner at Apollo.
Goldman Sachs and Wells Fargo Securities are acting as financial advisors to CKE, and Morgan Lewis is serving as legal counsel to the company. King & Spalding is serving as legal counsel to Roark Capital Group.
