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P.F. Chang's draws buyout interest - source

by Demitri Diakantonis  |  Published October 26, 2011 at 11:30 AM
PFChangs.jpgPotential buyers, mostly private equity firms, are circling the Asian-themed restaurant chain, P.F. Chang's China Bistro Inc., according to an industry source.

This person mentioned San Francisco-based Golden Gate Capital, which counts restaurant chains On the Border, Romano's Macaroni Grill and California Pizza Kitchen among its portfolio companies, as one possible bidder.

P.F. Chang's low valuation and relatively clean balance sheet makes it attractive to buyers, the source added. "It's a solid brand with strong cash flow that has just been poorly managed in my view," this person said.

It's not believed that P.F. Chang's has initiated a formal sales process. The Scottsdale, Ariz.-based company operates about 370 Asian-themed restaurants.

Officials from Golden Gate Capital and P.F. Chang's didn't immediately return calls.

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Tags: auction | brand | cash flow | Golden Gate Capital | P.F. Chang's | P.F. Chang's China Bistro Inc.

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