PepsiCo in Tentative Deal to Sell CPK
PepsiCo Inc. has reached a preliminary agreement to sell its majority interest in California Pizza Kitchen to Bruckmann, Rosser, Sherrill & Co., a New York investment firm that controls the Acapulco restaurants, an executive with the pizza chain said Wednesday.
The companies expect to close the deal and announce the terms of the purchase by Sept. 8, said Larry Flax, co-chair and co-founder of Los Angeles-based California Pizza Kitchen. Financing arrangements still have to be completed, he said.
Flax and Rick Rosenfield, the chain’s other co-chair, would retain the top management positions after the sale of the company, which has 79 restaurants in 19 states. The duo, which founded the company in 1985, head a partnership that holds 32.5% of the chain.
The sale of the remaining 67.5% is PepsiCo’s latest move to shed its restaurant industry holdings. The Purchase, N.Y.-based company recently announced plans to spin off its Taco Bell, KFC and Pizza Hut chains to its shareholders as a publicly traded company. PepsiCo recently sold Chevy’s, another restaurant holding. The sale of the PepsiCo stake, which the company acquired in 1992, required the approval of Flax and Rosenfield.
The investment firm owners have majority control of Restaurant Associates.
Restaurant Associates last month sold its Charlie Brown’s Steakhouse operation, but it still controls Acapulco, a California-based chain that serves Mexican cuisine. Restaurant Associates also owns the Sea Grill at Rockefeller Center. The firm first made its mark by launching the Four Seasons restaurant in New York.
“We’re very pleased with this agreement,” said Flax. “The new owners have the experience and resources to help us grow.”
Flax said CPK plans to open at least 15 new restaurants next year.
The company is known for expanding the horizons of casual dining by developing pizza with chicken toppings and other diverse offerings.
California Pizza Kitchen said the president of Restaurant Associates, Nick Valenti, will be reviewing the pizza chain’s operations over the next few weeks as a first step to becoming interim chief executive.
