BURGER KING® has been acquired by Carrols
ABOUT THE DEAL:
Carrols Restaurant Group, Inc. (“Carrols”) (Nasdaq: TAST) has acquired six BURGER KING® restaurants in Kentucky and Indiana. Headquartered in Western Kentucky, the franchisee owns and operates six restaurants, and employs nearly 180 people. Over the last thirty years, the franchisee has built a talented workforce and a loyal, consistent, and predictable customer base.
Headquartered in Syracuse, New York, Carrols is the largest BURGER KING® franchisee in the United States with over 705 restaurants in 16 states. It has operated BURGER KING® restaurants since 1976. As of the end of the third quarter 2015, restaurant sales had increased 21.1% to $217.7 million from $179.8 million in the third quarter of 2014, which included $39.4 million in sales from 132 BURGER KING® restaurants that were acquired in 2014 and 2015. Daniel T. Accordino, the Company’s Chief Executive Officer said, “We continue to effectively execute our acquisition strategy, and with the completion of these most recent transactions, we have acquired a total of 55 BURGER KING® restaurants in 2015. We are focused on capturing operational synergies and enhancing profitability at the restaurants we have acquired over the past couple of years. At the same time, we continue to pursue opportunities to acquire additional BURGER KING® restaurants in support of our ongoing expansion objectives.”
Allston Advisory Group served as the exclusive financial advisor to the sellers, a BURGER KING® franchisee headquartered in Western Kentucky. Allston constructed a mutually-agreed upon valuation assessment of the franchisee’s holdings, prepared a thorough confidential memorandum, and identified numerous strategic and financial buyers. With its recent purchase of the franchisor’s right of first refusal in 20 states, including Kentucky and Indiana, Allston approached and managed the confidential sale process with Carrols. Consequently, the transaction satisfied the franchisee’s desires of liquidating his BURGER KING® restaurant holdings and providing employees with an established, well-capitalized new owner. With this acquisition, Carrols was able to expand geographically, capture operational synergies, and enhance profitability.
ABOUT ALLSTON ADVISORY GROUP, LLC:
Allston Advisory Group, LLC is an experienced M&A advisory firm providing mergers & acquisitions, business valuations, and exit strategies, to lower middle market companies. The firm has an established track record of serving corporate clients across a broad spectrum of industries throughout the United States. Allston Advisory Group has the experience, professional fortitude, and quality of work that enable the firm to consistently deliver high-level results to its clients.
For additional information on this deal, please contact one of our advisors.