California Pizza Kitchen Inc. (Nasdaq: CPKI) shares rose 9.9% to $18.36 after the Los Angeles-based company said it would be purchased by an affiliate of Golden Gate Capital for $18.50 a share in cash. The deal is valued at $470 million. Volume for the stock Wednesday morning was 14.7 million shares, towering over an all-day average of less than 192,000.
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.
Rick Rosenfield and Larry Flax, co-CEOs of California Pizza Kitchen, said, “This announcement represents a very positive outcome for our stockholders and we believe it is also a great development for our employees, guests and business partners.
“We are very excited as we open a new chapter in the very successful history of CPK. Golden Gate Capital is a leading investor in the restaurant industry, with a proven track record as a value-added partner to its portfolio companies, and we believe that its significant commitment and experience in the sector will benefit all of our stakeholders.”
California Pizza Kitchen, Inc., founded in 1985, is a leading casual dining chain featuring an imaginative line of hearth-baked pizzas, including the original BBQ Chicken Pizza, and a broad selection of distinctive pastas, salads, appetizers, soups, sandwiches and desserts.