Thomas H Lee Partners plans to boost its fast food holdings with the $928 million take-private of CKE Restaurants. The transaction price includes the assumption of $309 million in net debt.
Bank of America Merrill Lynch and Barclays Capital have provided an undisclosed amount of acquisition financing for the deal, according to a statement.
New York Stock Exchange-listed CKE – which controls more than 3,000 Carl's Jr. and Hardee's restaurant locations in 42 states and 14 countries – saw its stock rise 28 percent Friday upon news of the deal, closing at $11.37 per share.
Carl's Jr burger: on THL's menu
The deal will add a second, high profile fast food chain to THL's portfolio. The Boston-headquartered firm already owns Dunkin' Brands, parent of Dunkin' Donuts, along with Bain Capital and the Carlyle Group.
It is not the first time name-brand burger franchises have become a private equity target. TPG, Bain and Goldman Sachs have notably received a steady revenue stream since purchasing Burger King's US operations for $1.5 billion in 2003. The trio have have slowly sold down their stake after the company's public listing in 2006, which raised $425 million.