Industry News | November 19, 2001
CKE to Acquire Santa Barbara Restaurant Group
Santa Barbara Restaurant operates the La Salsa, Timber Lodge Steakhouse, and Green Burrito restaurant chains. The deal will eliminate royalties that CKE, Green Burrito's largest franchisee, pays to Santa Barbara, while also giving CKE an opportunity to expand the La Salsa Mexican-style chain, the companies said.
The agreement calls for each share of Santa Barbara Restaurant Group to be converted into the right to receive 0.50 shares of CKE common stock. The value assumes CKE's Friday closing price of $7.85 a share and 15.411 million Santa Barbara shares outstanding, including options.
If the average CKE common share price is less than $6.25, Santa Barbara will have the right to terminate the agreement, and if the average CKE common share price is greater than $9.50, CKE will have the right to terminate the agreement.
The price will be based on the average closing price of CKE common stock during the 10-day trading period ending on and including the second business day immediately prior to the effective time of the merger.
Shares of CKE rose 16 cents, or 2 percent, to $8.01 Monday.
Food & Beverage
Thank you for signing up to receive QSR's flagship e-newsletter, A.M. Jolt. To help us better serve the information needs of our audience, please complete the information below.
In addition to A.M. Jolt, we also offer the following e-newsletters and communications. Please mark those you would like to receive.
- Business Services
- Cleaning & Sanitation
- Computer Systems/Software
- Dispensing Equipment
- Disposables, Packaging, Plastics
- Equipment Installation/Repair
- Financial Products/Services
- Food Products
- Franchise Opportunities
- Kitchen Equipment
- Safety Services/Products
- Security Systems