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: Old Hill's Stone On Private Debt, P2P And Credit Bubbles

Jun 6 2017 | 7:52pm ET

While institutional capital continues to flow into the broader private debt sector...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

AIMA: How The U.K.'s SMCR Will Affect U.S. Firms

Jun 20 2017 | 6:29pm ET

U.S. investment managers need to think seriously about how tough new U.K. conduct...

 
Error

From the current issue of