QUICK Service Restaurant Holdings, the group behind the more than 600 Red Rooster, Oporto and Chicken Treat food chains, has been sold by one private equity firm to another.
Archer Capital snapped up a majority stake in QSR from Quadrant Private Equity for an undisclosed sum, believed to be about $450 million. Management will keep its 10 per cent stake.
Quadrant said the sale provide a more attractive option than a float later in the year.
Sharemarket conditions have been weak and successful gloats over the past two years have been thin on the group, Smart Company reports, as vendors choose trade sale over trying their luck with a nervous market.
Law firm Freehills advised Archer Capital, lead by partner Damien Hazard.
Minter Ellison advised the vendors in the deal, including Quadrant, which is a long standing client of the firm's. It recently advised on the clients' investments in Virtus Health, Independent Pub Group and Media Monitors. It also advised on the raising of the A$750m Quadrant Fund No 6.
"We were very pleased to advise Quadrant and the QSR management team on this significant transaction and delighted to see the shareholders achieve a wonderful result on the sale of the business," Minters lead partner Callen O'Brien said.
O'Brien was assisted by special counsel Oliver White.
Quadrant initially considered a dual track sale process but decided to proceed with a trade sale to Archer in light of the market volatility, he said.