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

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note