News

Roark Capital adds Carl's Jr., Hardee's to portfolio with CKE acquisition

November 20, 2013

CKE Inc., parent company of Carl's Jr. and Hardee's brands, announced Tuesday that an affiliate of Roark Capital Group has entered into a definitive agreement to acquire a majority stake in the company with senior management retaining a minority stake.

CKE is currently majority-owned and controlled by investment funds affiliated with Apollo Global Management LLC. Terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter.

Headquartered in Carpinteria, Calif., CKE also owns, operates and franchises Green Burrito and Red Burrito restaurant brands, for a total of 3,400 restaurants in 42 states and in 29 countries and U.S. territories worldwide. The company generates approximately $3.9 billion in system revenues.

"Roark is thrilled to partner with CKE's A+ management team led by (CEO) Andy Puzder, and be associated with these differentiated brands and their engaged and successful franchisees and employees," Neal Aronson, Roark's Managing Partner, said in a news release.

Atlanta-based Roark Capital Group specializes in franchise brand management and its portfolio now includes 27 companies such as Arby's, Auntie Anne's, Cinnabon, Carvel Ice Cream, Corner Bakery, McAlister's Deli, Moe's Southwest Grill, Schlotzsky's and Wingstop.

"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," Puzder said. "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."

Goldman Sachs & Co. and Wells Fargo Securities LLC are acting as financial advisors to CKE, and Morgan Lewis LLP is serving as legal counsel to the company. King & Spalding LLP is serving as legal counsel to Roark Capital Group.

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