Roark Capital announced Thursday that its subsidiary, Focus Brands Inc., completed its acquisition Cinnabon and Seattle's Best Coffee International from AFC Enterprises, Inc. for $21 million in cash. These brands now combine with Carvel Corporation to form Focus Brands, Inc., which will hold Roark's franchise brands.
This transaction is a key part of the AFC strategy to reduce its focus to one brand. Late in 2003, Starbucks purchased Seattle's Best Coffee's U.S. franchise rights for $70 million, and AFC recently announced the sale of Church's Chicken to Crescent Capital Investments, Inc. for $383 million in cash and $7 million on a promissory note. After these divestitures, AFC will be left with only one franchise brand -- Popeye's Chicken & Biscuits.
Posted by franchiselawblog at November 9, 2004 05:07 PM