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California Pizza agrees buyout
30 May 2011: California Pizza Kitchen Inc (CPKI.O) has consented to be acquired by private equity firm Golden Gate Capital for $470 million (approx Rs 2,115 crore), more than a year after its hunt for a buyer began.
The sale price of $18.50 a share was less than some investors had expected and fell short of the stock's 52-week high of $20.
The company, which offers unusual items like Korean barbecue steak tacos and pear and gorgonzola pizzas, was one of several restaurant chains up for sale at a time when consumers are still cautious about spending.
Other chains currently on the block include McCormick and Schmick's, Morton's Restaurant Group Inc (MRT.N) and YUM Brands Inc's (YUM.N) Long John Silver' and A&W All-American Food.
Like many other restaurant chains, California Pizza is grappling with higher costs for commodities like cheese and produce, and fuel costs.
Source: ImagesFood