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.

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