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Golden Gate Buying California Pizza Kitchen for $470 Million

Private equity firm Golden Gate Capital is buying California Pizza Kitchen for about $470 million.

California Pizza Kitchen
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California Pizza Kitchen

The $18.50-per-share cash bid is an 11 percent premium to the restaurant chain's $16.71 closing stock Tuesday.

California Pizza Kitchen's stock gained $2.09, or 12.5 percent, to $18.80 in premarket trading Wednesday.

California Pizza began exploring a potential sale of the company in February. The Los Angeles company's board unanimously approved the deal and recommends stockholders tender their shares in the tender offer.

The acquisition is expected to close in the third quarter.

Golden Gate's other restaurant buyouts include the purchase of On the Border last year. And last month Lawson Software agreed to a $2 billion acquisition offer from Golden Gate and Infor.