Golden Gate Capital to acquire California Pizza Kitchen
California Pizza Kitchen and Golden Gate Capital announced that they have entered into a definitive agreement under which an affiliate of Golden Gate Capital will acquire the company for $18.50 per share in cash, or approximately $470 million. The purchase price represents a 32% premium to the 30-day average price prior to the company's Board of Directors authorizing management to begin exploring strategic and financial alternatives on February 23, 2010, and a 15% premium to the 30-day average price prior to the announcement of the transaction. The transaction is currently expected to close in the third quarter of this year.
The announcement follows a comprehensive review undertaken by the Board to maximize stockholder value. CPK formed a special committee, comprised of independent directors, and retained financial advisors to evaluate strategic and financial alternatives. After a thorough assessment, the special committee unanimously recommended and the Board of Directors unanimously approved the agreement. The Board of Directors unanimously recommends that the company's stockholders tender their shares in the tender offer.