Last Update: 11:53 AM ET Nov. 1, 2004 CHICAGO (CBS.MW) - AFC Enterprises Inc. said Monday it has inked a deal to unload the Church's Chicken chain to a private investment group for $390 million. Atlanta-based Crescent Capital Investment Inc. will pay $383 million in cash, while an affiliate of the company will issue a $7 million subordinated note for the 1,236-store chain. AFC (AFCE: news, chart, profile) shares rose 52 cents, or 2.3 percent, to $22.20. Church's is a fast-food chain whose menu focuses on traditional Southern fried chicken at low prices. Last year, the company rang up sales of nearly $900 million. The announcement follows AFC's June notice that it was "exploring strategic alternatives" to enhance shareholder value that could include a Church's sale. Net proceeds of the sale are expected to total around $275 million after taxes. Chief Executive Frank Belatti said the board is still thinking about what to do with the money, but that it could include paying down debt and other methods to return value to shareholders. Those could include a share repurchase program or a special dividend, among others. AFC, also based in Atlanta, is the franchisor and operator of Popeyes Chicken & Biscuit, as well as the Cinnabon sweet roll chain. The company also is a franchisor of Seattle's Best Coffee in Hawaii, on military bases and at international sites. Seattle's Best is owned by Starbucks Corp. (SBUX: news, chart, profile). Crescent Capital also owns other restaurant and retail entities, including Caribou Coffee Co. and Loehmann's Holdings Inc.
-
Church's Chicken has a new owner
Related Content
Features
Sponsored by:
News
Blogs
User Comments
- No data available.
Sponsored by:
