California Pizza Kitchen Inc. (CPK), the gourmet pizza chain, this week agreed to be sold for $470 million to Golden Gate Capital, a San Francisco-based private equity firm.
The purchase price is more than 15 percent above CPK’s 30-day average stock price closing on Wednesday. Golden Gate paid $18.50 per share, for a total of $470 million.
CPK, which is based in Los Angeles, began exploring its options beginning in February 2010. The company was co-founded by Larry Flax and Rick Rosenfield more than 25 years ago. Both men are currently serving as co-CEOs.
“Golden Gate Capital is a leading investor in the restaurant industry, with a proven track record as a value-added partner to its portfolio companies, and we believe that its significant commitment and experience in the sector will benefit all of our stakeholders,” Flax and Rosenfield said in a joint statement.
One of CPK’s minority investors, hedge fund Clinton Group, is exploring an alternative to the deal, proposing to buy back stock from shareholders for an even bigger premium by having the firm take on additional debt.
Golden Gate Capital has prior experience in the restaurant space. The fund has $9 billion under management, according to the firm. It already has restaurant industry holdings including On the Border Mexican Grill, which it bought last March.
CPK has 265 locations worldwide, with 205 stores run by the company directly. The remainder are franchises.
The purchase price is more than 15 percent above CPK’s 30-day average stock price closing on Wednesday. Golden Gate paid $18.50 per share, for a total of $470 million.
CPK, which is based in Los Angeles, began exploring its options beginning in February 2010. The company was co-founded by Larry Flax and Rick Rosenfield more than 25 years ago. Both men are currently serving as co-CEOs.
“Golden Gate Capital is a leading investor in the restaurant industry, with a proven track record as a value-added partner to its portfolio companies, and we believe that its significant commitment and experience in the sector will benefit all of our stakeholders,” Flax and Rosenfield said in a joint statement.
One of CPK’s minority investors, hedge fund Clinton Group, is exploring an alternative to the deal, proposing to buy back stock from shareholders for an even bigger premium by having the firm take on additional debt.
Golden Gate Capital has prior experience in the restaurant space. The fund has $9 billion under management, according to the firm. It already has restaurant industry holdings including On the Border Mexican Grill, which it bought last March.
CPK has 265 locations worldwide, with 205 stores run by the company directly. The remainder are franchises.
