Thomas H. Lee has entered into a definitive agreement to acquire CKE Restaurants (NYSE: CKR) for $928 million, including approximately $309 million of assumed debt. The $11.05 per share offer represents a 24% premium to CKE's closing price the day prior to the announcement. The deal reportedly includes about $450 million of equity and $575 million of debt financing. CKE owns Carl's Jr. and Hardee's restaurant chains, which have a combined 3,100 franchises across the country.
Private equity firms have taken 23 U.S. companies private since the beginning of 2009, investing over $4 billion in the deals, according to the PitchBook Platform. Another five public-to-private deals are currently pending, including the TPG Capital-led $5.2 billion deal for IMS Health. The average deal valuation to EBITDA multiple for 2009 deals is 11.5x, a noticeable drop from 2008's multiple of 14.85x and 2007's of 18.15x. The median deal amount also declined significantly from $797 million in 2007, to $158 million in 2008, to $97 million in 2009, showing the significant effects of the credit crisis and ensuing recession on private equity investment.