AFC Enterprises has completed the sale of its Church's brand to an affiliate of Crescent Capital Investments, Inc., an Atlanta-based private equity firm. The agreement to sell Church's was previously announced on November 1, 2004. In connection with the closing of that transaction, certain real estate and restaurant facilities were excluded and are being sold to Church's franchisees. The Church's franchisees are paying AFC approximately $3.7 million to purchase land, and in some cases the related restaurants previously leased to them by the company.
Aggregate gross proceeds from the transactions, subject to customary closing adjustments, are approximately $390 million, comprised of $383 million in cash and a subordinated note from an affiliate of Crescent Capital for $7 million. The Company expects net proceeds, after tax considerations, to be approximately $275 million. AFC's Board of Directors hasn't yet decided what to do with the proceeds.