California Pizza Kitchen Reaches $470 Million Buyout Deal
California Pizza Kitchen Reaches $470 Million Buyout
Deal
California Pizza Kitchen announced on Wednesday it has reached an agreement to be acquired by a private equity firm for $470 million, finally bringing to an end a 15-month-long search for a buyer. Golden Gate Capital has agreed to pay $18.50 a share for the restaurant chain, a price analysts say is rather low, given that it falls below the company's 52-week high stock price of $20 a share.
CPK, known for its unusual menu items like gorgonzola pizza and Korean barbecue steak tacos, is one of a handful of restaurant chains that have been put up for sale in recent months as American consumers continue to watch their spending. Other chains currently seeking buyers include Morton's Restaurant Group, McCormick & Schmick's, and Yum Brands' A&W and Long John Silver's.
As with all restaurants, CPK has had to struggle with rising prices for commodities like cheese, meat, and produce, as well as climbing fuel costs. The restaurant's attempt to find a buyer was hindered by declining profits and sales as it struggled to stand out to consumers with less and less discretionary income. The company reported lower profits in early May, though they were above Wall Street estimates.
Golden Gate, the equity firm buying CPK, also owns Romano's Macaroni Grill and On the Border Mexican Grill & Cantina.
California Pizza Kitchen announced on Wednesday it has reached an agreement to be acquired by a private equity firm for $470 million, finally bringing to an end a 15-month-long search for a buyer. Golden Gate Capital has agreed to pay $18.50 a share for the restaurant chain, a price analysts say is rather low, given that it falls below the company's 52-week high stock price of $20 a share.
CPK, known for its unusual menu items like gorgonzola pizza and Korean barbecue steak tacos, is one of a handful of restaurant chains that have been put up for sale in recent months as American consumers continue to watch their spending. Other chains currently seeking buyers include Morton's Restaurant Group, McCormick & Schmick's, and Yum Brands' A&W and Long John Silver's.
As with all restaurants, CPK has had to struggle with rising prices for commodities like cheese, meat, and produce, as well as climbing fuel costs. The restaurant's attempt to find a buyer was hindered by declining profits and sales as it struggled to stand out to consumers with less and less discretionary income. The company reported lower profits in early May, though they were above Wall Street estimates.
Golden Gate, the equity firm buying CPK, also owns Romano's Macaroni Grill and On the Border Mexican Grill & Cantina.
Comments
Top Stories
Latest DT's
-
1 month ago by Geno -
1 month ago by dallaseste
-
1 month ago by Geno
-
1 month ago by Geno
-
1 month ago by Geno
-
1 month ago by Geno
-
1 month ago by Geno
-
1 month ago by Geno
-
2 months ago by dallaseste
Top Authors
Subscribe
Games
Alias
3 Foot Ninja 2
ALIAS 2
Air Dodge
Battle Tanks
Bomber Bob
Cable Capers
Gem Mania
Hacker
Hostile Skies
Mission Mars
Bowling
Samurai Warrior
The Pharoh's Tomb
Monkey Lander
Muay Thai
Action
Donkey Kong Banana Barrage
501 Dart Challenge
Rooftop Skater
Zelda
Donkey Kong
Xtreme Pinball
Tetris
Connect 4
Battleships
Frogger
Penguin Push
Online Video Poker
Spank The Monkey
Mob Pay Back
Dealer
Yeti Sports Seal Bounce
Hold Your Drink Steady
Solitaire
Canyon Glider
3D Sudoku
Metal Slug Rampage
Street Fighter II
Flashman
Disc Golf
Table Tennis
Ninja Air Combat
Celebrity Hitman Terrorist Alert
Spider Solitaire
Tubin
Presidential Knockout
Global Player
Ma Balls
Baseball
Beckham Fit
0 Comments
Click here to sign up now.