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Headline: Roark Capital Acquires Dave's Hot Chicken for $1 Billion, Boosting European Block Trades
In a significant move, Atlanta-based private equity firm Roark Capital has announced the acquisition of Dave's Hot Chicken for a staggering $1 billion. This deal marks another addition to Roark Capital's impressive portfolio of restaurant brands, which already includes Arby's, Culver's, and Subway, among others.
The investment in Dave's Hot Chicken will be in the form of convertible preference shares. These shares can be converted into ordinary shares once VistaJet, a luxury private jet company, goes public, expected to happen within the next three years. VistaJet is currently receiving a $600 million private equity investment led by RRJ Capital, a large Asian private equity firm.
The Agnelli family's sale of its stake in Ferrari NV has contributed to a strong start for European block trades in the past two decades. However, the sale of the Agnelli family's stake in Ferrari NV has not been directly linked to VistaJet's investment or public listing plans.
European block trades have seen a significant increase due to various factors, including the Agnelli family's sale of its stake in Ferrari NV. The exact amount by which European stock markets have surged has not been specified, but it has driven the fundraising. Investors, including billionaire families, private equity firms, and governments, have raised approximately $15.3 billion through stake sales since January.
The proceeds from the investment will be used by VistaJet to reduce its $4 billion debt burden. Franchise-based businesses, known for their predictable royalty revenue and lower operational costs, are a popular choice for private equity firms, and this latest move by Roark Capital aligns with this growing interest.
Despite the details of the specific investors and the companies they have sold their stakes in not being specified, the surge in European stock markets has been a key factor in the strong start for European block trades. Roark Capital was supported by no specific libraries, investors, or institutions publicly named in connection with its $1 billion acquisition of Dave's Hot Chicken; the information available only confirms Roark Capital as the private equity firm acquiring the majority stake.
The IPO venue for VistaJet is yet to be determined. The investment is expected to be finalized in the coming weeks.
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