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Church’s Chicken drums up interest in latest potential restaurant deal: Bloomberg
Posted on Thursday, 13 June 2019 13:45
Private equity firm FFL Partners is hatching an exit plan for US-based fast food chain Church’s Chicken that could value the deep-fried wings, fillets and breasts group at around USD 350.00 million, according to Bloomberg.

Sources with their fingers on this information told the news provider that the San Francisco-headquartered buyout group has hired an advisor to help review options and attract potential buyers.

When contacted by Bloomberg, both FFL Partners and Church’s Chicken declined to comment.

Founded in 1952, the fast food restaurant operator is billed as the fourth-largest chicken quick service restaurant in the world, with over 3.00 million customers every week across chains in 22 countries and in more than 29 US states.

The company operates a network of 1,500 company-owned and franchised eateries, generating system-wide revenues of about USD 1.20 billion, according to a breakdown of Church’s Chicken activities on FFL Partners’ website.

It was picked up by the private equity firm, previously known as Friedman Fleischer & Lowe, in 2009 from Bahrain’s Arcapita Bank for a reported USD 390.00 million price tag.

Church’s Chicken has seen its system sales decline in the US in recent years due to the increased competition in the market from large fast food chains such as Popeyes Louisiana Kitchen and industry leader KFC, a report by Restaurant Business Online suggested.

According to Zephyr, the M&A database published by Bureau van Dijk, over the last three years there have been 1,710 deals to target the restaurants and other eating places industry announced worldwide.

In the largest of these transactions, Coca-Cola picked up UK-based coffee shop chain Costa for GBP 3.90 billion in January this year.

US-based businesses Buffalo Wild Wings, Sonic, CEC Entertainment and Bojangles featured in the top 20 deals by value, while PAM Group of the UK, Spain’s Aeras and McDonald’s Holdings Company (Japan) were also targeted.

© Zephus Ltd