CKE Restaurants Inc. said Wednesday that it has agreed to sell its La Salsa Fresh Mexican Grill restaurants to Baja Fresh Mexican Grill, for an undisclosed amount, in order to focus on its other brands.
St. Louis-based Hardee’s Food Systems Inc. is a division of Carpinteria, Calif.-based CKE Restaurants Inc. (NYSE: CKR), which in addition to La Salsa also owns, operates and franchises the Carl’s Jr. brand. Some Carl’s Jr. locations also offer a Mexican menu, branded Green Burrito.
The agreement calls for CKE’s Santa Barbara Restaurant Group Inc. subsidiary to sell its 100 percent equity interest in La Salsa Inc. and La Salsa of Nevada Inc. to Baja Fresh Mexican. Based in Thousand Oaks, Calif., Baja Fresh Mexican is owned by David Kim, a former Carl’s Jr. franchisee, and M Plus Capital, based in Santa Monica, Calif. Baja Fresh Mexican operates or franchises about 292 restaurants nationwide, none in the St. Louis metropolitan area.
La Salsa Fresh Mexican Grill has one location in the St. Louis area, at 12356 Olive Boulevard in west St. Louis County, owned by local franchisee Whole Enchilada Reveladores LLC.
The deal is expected to close by the end of June, subject to customary closing conditions. The transaction is not expected to have a material impact on CKE’s future earnings on a consolidated basis, the company said.
CKE To Sell Its La Salsa Chain
May 31, 2007 by Mark | 0 Comments
In Franchising in USA and/or Canada
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