Carl’s Jr. to be “flipped” by PE owner?

In August 2012, CKE Inc. postponed its planned IPO on the New York Stock Exchange. The company, owned by private equity firm Apollo Management, had announced its intention to list around 28.0 per cent of its stock on the NYSE in May, but postponed the deal reportedly as a result of “market conditions”.

The name CKE may not be that familiar to you, but if you have spent any time in the US on holiday or on business I am sure that you cannot have failed to notice the bright yellow star symbol of the burger joint Carl’s Jr.

CKE are the California-based company behind Carl’s Jr., Hardee’s, Red Burrito and the Green burrito burger and fast food restaurants. They operate over 3,300 restaurants, not just in the US but in a further 27 countries, and were taken private in a USD 1bn+ deal by Apollo Management in July 2010.  The original transaction was a little bumpy, in that an initial offer was made for the company by Thomas H Lee valuing the business at USD 928.00 million, but Apollo eventually outbid Thomas H Lee and won the shareholders’ approval with an offer price of USD 12.55, representing a premium of around 40.8 per cent on the share price at close of business prior to the deal announcement date.

Whilst neither Apollo nor CKE will provide confirmation, press sources are speculating that CKE is in the early stages of the sale process and could be “flipped” soon.

Filed under: food, restaurants, US, dealmaking