ARCAPITA COMPLETES THE SALE OF CHURCH’S CHICKEN, DELIVERING RETURNS OF 2.5 TIMES
(Manama, August 28, 2009) - Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, announces that it has successfully completed the sale of Church’s Chicken to Friedman Fleischer & Lowe, a San Francisco-based private equity firm. Church’s Chicken was acquired by Arcapita and its affiliates in December 2004 for $390 million, which was reduced to $228 million after a $162 million sale and leaseback of the Company's real estate portfolio. Given the current LBO environment, the closing of this transaction, generating a total gross return to Arcapita Bank of 2.5x its invested capital and an IRR of 23% over the lifetime of the investment, marks the culmination of a very profitable ownership period for Arcapita and its investors.
During Arcapita’s four and a half years of ownership, the Company increased margins while expanding the store base and adding new markets in the U.S., Latin America, Arabian Gulf, U.K., Russia and India. As a result, the Company achieved annual global system sales of more than $1.2 billion and recorded earnings growth of almost 60%. Arcapita was advised by Bank of America Merrill Lynch Securities.
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