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Sun Capital to acquire Boston Market

Sun Capital Partners will buy rotisserie chicken maker Boston Market from McDonald’s for an undisclosed amount.

McDonald’s has agreed to sell its Boston Market chain to Boca-Raton-based Sun Capital Partners, according to the fast food chain’s second quarter report.

According to the filing, the transaction will close in the third quarter. Although financial terms of the deal were not disclosed, McDonald’s reported that as of 30 June, Boston Market had total assets of $180 million (€130 million) and liabilities of $89 million.

McDonald’s bought Boston Market out of bankruptcy in 2000 for $173.5 million, and had said in January that it would study strategic options for the chain.

Sun Capital declined to comment on the deal. The firm, which specialises in carve-outs and distressed opportunities, recently bought the Limited Stores chain from Limited Brands for $125 million. The firm also recently invested $60 million in subprime mortgage originator First NLC Financial Services, in the midst of a steep decline in the mortgage market.

Sun Capital’s most recent restaurant deal was the July acquisition of Pacific Coast Restaurants for an undisclosed amount. The restaurant sector makes up about 7 percent of Sun Capital’s portfolio; its investments include Bruegger’s Enterprises, Garden Fresh and Fazoli’s restaurants.