Roark Capital Group has entered into an agreement to acquire a majority stake in CKE Inc., a quick service restaurant company and a portfolio company of Apollo Global Management. The transaction is expected to close in the fourth quarter of 2013.
CKE owns, operates and franchises quick-service restaurants 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 $3.9 billion in system revenues. The company is headquartered near Santa Barbara in Carpinteria, CA (www.ckr.com) (www.carlsjr.com) and (www.hardees.com).
The senior management of CKE, led by Andy Puzder, CKE’s Chief Executive Officer, will maintain a minority equity interest in CKE.
“Roark is thrilled to partner with CKE’s A-plus management team led by Andy Puzder, and be associated with these differentiated brands and their engaged and successful franchisees and employees,” said Neal Aronson, Roark’s Managing Partner.
Roark Capital Group invests in consumer and business services companies, with a focus on the franchise, food and restaurant, specialty retail, environmental services, waste management, and marketing services sectors. The firm has $3 billion in equity capital under management and is based in Atlanta (www.roarkcapital.com).
“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,” said Mr. Puzder. “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 organization. We’re also very grateful to Apollo for the support and guidance they have provided over the past three years. They’ve been great partners and a big part of our success over that period of time.”
Apollo is a global alternative investment manager with offices in New York, Los Angeles, Houston, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo has assets under management of approximately $114 billion in private equity, credit and real estate funds invested across a core group of nine industries (www.agm.com).
“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 organization,” said Peter Copses, CKE’s Chairman and a Senior Partner at Apollo.
Goldman Sachs & Co. and Wells Fargo Securities are acting as financial advisors to CKE.
© 2013 PEPD • Private Equity’s Leading News Magazine • 11-20-13
