PF Chang’s sells up in billion-dollar deal
2 May, 2012
Giant US Asian dining chain PF Chang’s is to be sold to private equity firm Centerbridge Partners in a $1.1bn (£0.7bn) deal.
The deal is a useful sign of confidence in the US restaurant sector and big-name brands in particular.
The move takes the China Bistro chain back into private ownership, though it is subject to a competing offers clause until the end of May. Analysts in the US do not expect any other bids to derail the takeover.
Rick Federico, chairman and chief executive of PF Chang's, said: “We are excited about this transaction with Centerbridge, as it recognizes the value of P.F. Chang's highly respected brands and talented employees, while providing our stockholders with an immediate and substantial cash premium for their investment… We are confident that being a private company will provide us with greater flexibility to focus on our long-term strategic plan of elevating our guest experience, enhancing our value proposition, growing traffic and improving the performance of our brands.”
Jason Mozingo, senior managing director of Centerbridge, said: “We have great respect for PF Chang’s, its brands, and the company's strong commitment to its customers, employees, and partners. We look forward to working with management to lead the Company through its next phase of growth and development.”
Centerbridge adds PF Chang’s to Rock Bottom Restaurants and Gordon Biersch Brewery restaurant Group, which it acquired in 2010. PF Chang’s operates 204 casual dining bistros and the 170-strong Pei Wei Asian Diner chain. Its most recent financial results put its sales in the quarter to 1 April at $318.9m, up fractionally on the same period last year.