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CKE Restaurants accepts buyout from Apollo affiliate


Carpenteria, Calif. CKE Restaurants, parent of Hardee's and Carl's Jr., said it has accepted a buyout deal valued at $1 billion from an affiliate of Apollo Global Management.

The deal with Columbia Lake Acquisition Holdings, which includes a cash offer of $12.55 a share and the refinancing of CKE's debt, is expected to close by the end of second quarter 2011, the companies said in a statement Monday morning.

CKE said it had terminated an earlier acquisition agreement from another private-equity firm, Thomas H. Lee Partners, for $11.05 per share, or about $615 million in cash. THL's offer also included the assumption of $309 million in debt.

The deal with Apollo is contingent on regulatory approval and a vote by CKE shareholders. CKE said affiliates of Morgan Stanley, Citi and RBC Capital Markets are providing $700 million in financing for the deal.

Carpinteria, Calif.-based CKE operates or franchises 1,224 Carl's Jr. restaurants and 1,905 Hardee's locations.

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