Sunday, November 24, 2013

Roark Capital Group to Acquire CKE Restaurants from Apollo Global Management



CARPINTERIA, Calif - Wednesday, November 20th 2013 [ME NewsWire]

(BUSINESS WIRE) CKE Inc. (“CKE” or the “Company”) announced today that an affiliate of Roark Capital Group has entered into a definitive agreement to acquire a majority stake in the Company with senior management retaining a minority stake. CKE is currently majority-owned and controlled by investment funds affiliated with Apollo Global Management, LLC (together with its consolidated subsidiaries, “Apollo”) (NYSE: APO). Terms of the transaction were not disclosed. The transaction is expected to close in the fourth quarter of 2013, subject to regulatory approvals and other customary closing conditions.

Headquartered in Carpinteria, California, CKE, through its subsidiaries, owns, operates and franchises some of the most popular brands in the quick-service restaurant industry, including the Carl’s Jr.®, Hardee’s®, Green Burrito® and Red Burrito® restaurant brands. The CKE system includes 3,400 restaurants in 42 states and in 29 countries and U.S. territories worldwide generating approximately $3.9 billion in system revenues.

“Roark is thrilled to partner with CKE’s A+ management team led by Andy Puzder, and be associated with these differentiated brands and their engaged and successful franchisees and employees,” commented Neal Aronson, Roark’s Managing Partner.

“We’re looking forward to our long-term partnership with Roark Capital Group. Their proven track record of success and deep expertise in the restaurant and franchise sectors will be very beneficial as we continue to grow and expand CKE’s market-leading brands around the world,” said Andy Puzder, CKE’s Chief Executive Officer. “The entire senior management team of CKE is very excited about having Roark Capital's support in continuing to build the Company’s world-class quick service restaurant organization.”

“We’re also very grateful to Apollo for the support and guidance they have provided over the past three years,” said Puzder. “They’ve been great partners and a big part of our success over that period of time.”

“We would like to thank the CKE management team, led by Andy Puzder, as well as all of the Company’s employees, franchisees and licensees for their dedication and commitment during our fund’s ownership to execute a business strategy that has built substantial value at CKE. We are fortunate to have had the opportunity to partner with such an outstanding organization,” said Peter P. Copses, CKE’s Chairman and a Senior Partner at Apollo.

Goldman Sachs & Co. and Wells Fargo Securities, LLC are acting as financial advisors to CKE, and Morgan Lewis LLP is serving as legal counsel to the Company. King & Spalding LLP is serving as legal counsel to Roark Capital Group.

About CKE Inc.

CKE Inc. is a privately held company headquartered in Carpinteria, Calif. The Company, through its subsidiaries, has a total of 3,400 franchised or company-operated restaurants in 42 states and 29 foreign countries and U.S. territories worldwide, including 1,409 Carl's Jr.® restaurants and 1,977 Hardee's® restaurants. For more information about CKE Restaurants, please visit www.ckr.com or its brand sites at www.carlsjr.com and www.hardees.com.

About Roark Capital Group

Roark Capital Group is an Atlanta-based private equity firm that specializes in franchise, brand management, environmental services and marketing services companies with attractive growth prospects. When its investment in CKE closes, Roark’s franchise brand portfolio will increase to 27 companies that collectively have more than 15,000 locations and $15 billion in system-wide revenues across 50 states and 68 countries. Roark’s total locations include nearly 13,000 domestic locations and more than 2,300 international locations. They also include nearly 13,000 franchise locations (operated by 4,200 franchisees) and 2,300 company-owned locations. CKE Restaurants is Roark’s 14th restaurant investment. Roark affiliates have also acquired other restaurant concepts including Miller’s Ale House, Arby’s, Auntie Anne’s, Cinnabon, Carvel Ice Cream, Corner Bakery, Il Fornaio, McAlister’s Deli, Moe’s Southwest Grill, Schlotzsky’s, and Wingstop. Roark’s portfolio also includes brands such as Atkins Nutritionals, Massage Envy, Batteries Plus, Primrose Schools, Money Mailer, FASTSIGNS, and Pet Valu. The firm has $3 billion of equity capital under management. For more information, visit www.roarkcapital.com.

About Apollo Global Management

Apollo is a leading global alternative investment manager with offices in New York, Los Angeles, Houston, London, Frankfurt, Luxembourg, Singapore, Mumbai and Hong Kong. Apollo had assets under management of approximately $113 billion as of September 30, 2013, in private equity, credit and real estate funds invested across a core group of nine industries where Apollo has considerable knowledge and resources. For more information about Apollo, please visit www.agm.com.

Contacts

CKE Inc.

Melissa Robinson, 805-745-7740

mrobinson@ckr.com



Roark Capital Group

Monica Rutkowski, 847-945-1300

mrutkowski@fishmanpr.com



Apollo Global Management

Gary Stein, 212-822-0467

gstein@apollolp.com





Permalink: http://me-newswire.net/news/9248/en

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