NPC International Inc. is buying 56 Wendy’s restaurants for $58.2 million, following a streak of other franchise acquisitions.
The restaurants are located in North Carolina and Virginia. The restaurants are being sold by Carlisle Corp., which operates Wendy’s stores.
NPC International, headquartered in Overland Park, Kansas, is a franchisee that operates 1,261 Pizza Hut restaurants and 90 Wendy’s restaurants. The company will operate the restaurants through subsidiary NPC Quality Burgers Inc. The acquisition allows NPC to expand its Wendy’s presence in the Mid-Atlantic region. In November, the company bought Wendy’s restaurants in the Salt Lake City area.
The deal will be funded with $40 million in incremental term loan borrowings, borrowings from NPC’s $110 million revolving credit facility and cash on hand. Buyers have been active in the franchise world lately, with Bain Capital agreeing to buy Australian franchise group Retail Zooin May, and also in May, TriArtisan Capital Partners and Sentinel Capital Partners agreed to buy TGI Fridays.
For more, see “Debt Markets Nourish Restaurant M&A.”