CKE Inc. (“CKE” or the “Company”) announced today 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 (together with its consolidated subsidiaries, “Apollo”) (NYSE: APO). 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 U.S. territories worldwide generating approximately $3.9 billion 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,” commented 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,” said 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 organization.”“We’re also very grateful to Apollo for the support and guidance they have provided over the past three years,” said Puzder. “They’ve been great partners and a big part of our success over that period of time.”