Sibling fast-food chains Carl's Jr. and Hardee's are now part of Roark Capital Group’s restaurant-focused portfolio.
Atlanta-based Roark Capital wrapped up its purchase of a majority stake in CKE Inc., which owns more than 3,400 restaurants across 42 states and in roughly 30 foreign countries. The Carpinteria, Calif.-based target was sold by Apollo Global Management LLC (NYSE: APO) and marks Roark's 29th multi-unit company and, with the co-brand of Carl’s Jr. and Hardee’s, the financial sponsor’s 17th restaurant franchise.
Terms of the deal were not disclosed, but Roark Capital usually invests up to $350 million in companies with revenue of at least $20 million. It currently has more than $1.5 billion of equity capital under management.
Roark Capital currently backs several other fast food and casual restaurant brands, including Arby's and Focus Brands, the parent company of Auntie Anne's, as well as Carvel, Cinnabon, Moe's Southwest Grill, Schlotzsky's, Il Fornaio and the recently acquired Miller’s Ale House.
Credit Suisse advised Roark on the deal, while law firms King & Spalding and DLA Piper handled legal matters. Goldman Sachs & Co. and Wells Fargo Securities LLC managed the sale process for CKE. Morgan Lewis & Bockius acted as sell-side legal counsel.