Coco’s, Carrows Acquisition Completed

Flagstar Cos. Inc. has completed its previously announced, $300-million acquisition of the Coco’s and Carrows restaurant chains from Irvine-based Family Restaurants Inc., the companies said Thursday.

The acquisition of the 330 Coco’s and Carrows locations boosted Flagstar’s total number of restaurants to more than 2,900 nationwide. The Spartanburg, S.C., company, which also owns the Denny’s and El Pollo Loco chains, has more than 300,000 employees and nearly $3 billion in yearly revenue.

“The acquisition of Coco’s and Carrows gives us a significant increase in market presence, especially in California, and provides Flagstar with additional consolidated revenue as part of our strategy to de-leverage our balance sheet,” said Flagstar Chairman and Chief Executive James B. Adamson.

Flagstar also named Mark L. Shipman as president of the newly acquired restaurant chain. Shipman, 46, will run the chains from headquarters in Irvine. He most recently served as vice president of acquisitions and development for Flagstar and played a major role in the Coco’s and Carrows acquisition, Adamson said.

Coco’s has about 170 units in Western states. Carrows has about 160 locations. Flagstar also acquired licensing rights for about 260 Coco’s restaurants in Tokyo and Korea, as well as the 17-unit jojos chain with locations in Texas and Indiana.