The Work

April 26, 2010 9:36 PM

CKE Says Yes...Again, This Time to Meatier Apollo Offer

Posted by Ed Shanahan

CKE Restaurants, the parent company of the Carl's Jr. and Hardee's fast-food chains, announced Saturday that it has agreed to a buyout offer valued at $1 billion from an affiliate of Apollo Global Management.

Columbia Lake Acquisition Holdings, Inc., submitted a takeover offer on April 19 for $12.55/share, or roughly $694 million, plus the assumption of CKE's outstanding debt. The share price, CKE said, represents a 41 percent increase over its share price at close of business on February 25--the day before CKE had accepted an initial offer from private equity firm Thomas H. Lee Partners valued at just over $900 million.

As we reported at that time, CKE had a standard 40-day go-shop period to consider other bids. The company reportedly wasn't too happy with THL's offer, and said it would actively solicit competing offers, as the Los Angeles Times reported Monday.

The Carpinteria, California-based company was again represented by a team from regular outside counsel Stradling, Yocca, Carlson & Rauth, according to CKE. The firm had been handling the company’s buyout by THL. C. Craig Carlson, a Stradling name partner, is leading the firm's team on the deal. Potter Anderson & Corroon partner Mark Morton is Delaware counsel to CKE.

Morgan, Lewis & Bockius advised Apollo on the merger agreement. The asset management firm is a long-standing Morgan Lewis client, according to a law firm spokeswoman. The legal team consisted of business and finance partners Robert G. Robison, R. Alec Dawson, and Jonathan D. Morris, employee benefits partner Gary S. Rothstein, labor and employment partner Carrie A. Gonell, environmental partner Judith A. Walkoff, and intellectual property partner James R. Sims in Washington, D.C.

According to the LA Times, the deal--unusual in that it's a buyout unrelated to a bankruptcy--signals the possibility of more sales in the restaurant chain sector. Pending various shareholder and regulatory approvals, the buyout is expected to close in the third quarter of 2010.

Contact Dimitra Kessenides at


Apollo Leads Junk Bond Sales in Record Rally: Credit Markets Bloomberg

CKE's New Mystery Bidder: Apollo The New York Times

Ropes, Stradling on $900M Leveraged Buyout (Yes, an LBO!) The Am Law Daily

Make a comment

Comments (0)
Save & Share: Facebook | Del.ic.ious | | Email |

Reprints & Permissions


Report offensive comments to The Am Law Daily.

The comments to this entry are closed.

By: TwitterButtons.com

From the Newswire

Sign up to receive Legal Blog Watch by email
View a Sample