Private Equity Firm Buys Arby's, Two Other Chains

Jun 14 2011 | 11:42am ET

A hungry private equity fund has added a slew of new restaurant chains to its portfolio in an impressive Monday binge.

Roark Capital Group first swallowed Arby's and its famed roast beef sandwiches in a deal worth $430 million. Its appetite whetted, the Atlanta-based firm turned around and completed its acquisition of CBC Restaurant Corp., which owns the Corner Bakery Café and Il Fornaio chains.

Roark now owns or invests in 20 franchise business, including 10 restaurant chains. The others include Carvel Ice Cream, Cinnabon, Schlotzsky's, Moe's Southwest Grill and Auntie Anne's Preztels.

The firm snapped up Arby's from the Wendy's/Arby's Group, which will lose half of its name. Wendy's will keep an 18.5% stake in Arby's. The split comes just three years after the two chains had merged under the auspices of Trian Partners' Nelson Peltz.

Roark will pay $130 million in cash and will assume $190 million in debt as part of the deal, in addition to pledging $50 million in further investment through 2013. Terms of the CBC deal were not disclosed.


In Depth

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Fiat Chrysler Files Paperwork For Ferrari IPO

Jul 23 2015 | 5:05pm ET

Italian sportscar maker Ferrari has taken a step closer to a stock market listing...

Guest Contributor

Lifting of Foreign Ownership Limits Signals Sea Change in Vietnam's Capital Markets

Jul 28 2015 | 3:01pm ET

The lifting of restrictions on foreign ownership limits in Vietnam later this year...

 

Editor's Note