ATLANTA Private-equity firm Arcapita Inc. has reportedly hired Bank of America Merrill Lynch to explore a sale of Cajun Operating Co., the franchisor of the 1,650-unit Church's Chicken chain.
According to a report Wednesday on TheDeal.com, Atlanta-based Arcapita is entertaining bids of approximately $360 million for the Church's franchisor. Arcapita acquired Cajun Operating Co. from Popeyes' owner AFC Enterprises Inc. in 2004 for $390 million.
In a statement sent to Nation's Restaurant News, representatives for Church's Chicken acknowledged the possibility of a sale, but provided no details about any potential deal.
"Cajun Operating Company É has been made aware that a communications from its parent company, Arcapita, indicates that another corporate investor may be interested in purchasing Church’s Chicken,” said Jennie Hong, Church’s director of marketing and corporate communications.
“Church’s Chicken has been under the ownership of Arcapita for more than four years now, and it is routine that other buyers may show interest in a restaurant property from time to time," she continued. "Church’s had apparent interest from another private equity firm in 2008, but the deal was never realized. The same could happen in this instance."
Church’s is known for its Southern-style chicken and signature honey butter biscuits. The chain reported annual sales of $1.2 billion in 2008.
Contact Elissa Elan at [email protected].