June 18, 2009

Private-equity firm Friedman Fleischer & Lowe LLC has announced its intention to buy Church's Chicken from the Bahraini bank that controls it.

Financing for the deal is provided by a syndicate led by the Bank of America, Golub Capital and Wells Fargo. Some of Church's existing lenders are also involved in the transaction.

Arcapita Bank B.S.C. bought Church's Chicken in 2004, and has been looking for cash injections since January when its credit rating was cut to "junk" status by Standard and Poor's.

Church's Chicken operates under Texas Chicken and its namesake brand, and has more than 1,600 locations worldwide.

The acquisition is expected to close in the next 30 days.