If anyone doubted America's (or at least journalist's) obsession with fast
food, then they need not look further than the sale of fast-food chain Back
Yard Burgers Inc. While our sister The Daily Deal, a newspaper about M&A
and private equity, simply shunted the story to its News in Brief section, the
$38 million LBO caught the eye of over 40 mainstream news outlets, according
to a Google News search. For comparison's sake, the Back Yard Burgers deal
received almost two-thirds as many stories as the latest news about
Blackstone
Group LP's pending initial public offering received. Below is the brief
from The Daily Deal and links to some of the mainstream media's coverage of
the buyout:
Atlanta investment firm Cherokee Advisors LLC and Pharos Capital
Group LLC of Nashville have agreed to acquire Back Yard Burgers Inc., a
Memphis-based operator of fast-food restaurants in 20 states, for $38 million.
Under terms of the deal, Cherokee and Pharos will pay $6.50 per share for the
Nasdaq-traded company's shares through entities named BBAC LLC and BBAC Merger
Sub Inc. The purchase price represents a 29% premium over Back Yard's closing
price on June 8. Morgan Keegan and Co. served as financial adviser to the board
of Back Yard Burgers, a company with a $32 million market capitalization. Morgan
Keegan also provided a fairness opinion to the board. —Kelly
Holman
—Matthew Wurtzel
See
Back Yard Burgers story from Forbes
See
Back Yard Burgers story from The Motley Fool
See
Blackstone story from TheDeal.com
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