Take-Out: Arcapita Selling Church’s Chicken
Atlanta buyout firm Arcapita is in the midst of selling Church’s Chicken, according to a source familiar with the situation. The firm has retained Bank of America to run the auction. Seeing a healthy company go on the auction block is a bit of uplifting news for M&A bankers, who haven’t gotten much action lately. But the term “healthy” is limited to the company’s performance—the offerings of the southern fast food chain won’t keep your cholesterol down. Texas-based Church’s Chicken has shown stable growth of between 8% and 10% through recession as consumers trade down to less expensive dining. In first round discussions, the company attracted interest from a select group of ten middle market private equity bidders. The pool of suitors has since been narrowed to three or four, and its unclear whether second round bids have been submitted, the source said.
