California Pizza Kitchen Inc.'s (CPKI) board authorized the
pizza chain's management to look at strategic alternatives
including a possible sale, merger or other combination.
The Wall Street Journal on Friday reported that the
casual-dining chain was on the auction block and that the company
has been soliciting interest from buyers including private-equity
firms.
An improving credit market and a rising stock market have lead
to an increase in acquisitions or takeover proposals last year,
though corporations and private-equity funds have moved tentatively
on billion-dollar deals this year.
The company has hired boutique investment bank Moelis & Co.
as its advisor in the review.
The restaurant chain has about 250 outlets in 32 states and nine
foreign countries. Revenue dropped 5.8% during the fourth quarter.
Sales faltered last year as consumers avoided casual-dining chains
amid higher unemployment and a broad recession. While analysts
expect California Pizza's sales to drop further during 2010, they
are anticipating growth next year and in 2012.
Bruckmann Rosser Sherrill, a well-known investor in restaurants,
bought California Pizza in 1997 from PepsiCo Inc. (PEP) and took it
public several years later.
-By Tess Stynes, Dow Jones Newswires; 212-416-2481;
Tess.Stynes@dowjones.com
(Dennis K. Berman of The Wall Street Journal contributed to this
article.)