Core Value Partners, a Miami-based private equity group, has won its b…

Core Value Partners, a Miami-based private equity group, has won its bid for the acquisition of 127 Burger King restaurants located in the midwest from AmeriKing, one of the largest Burger King franchisees. The deal occurred in an auction of AmeriKing’s largest sale of Burger King restaurants.

Core Value Partners was represented in the deal by the New York-based law firm of Chadbourne & Parke LLP. Attorneys working on the deal were Talbert Navia, Alejandro San Miguel and Joseph Smolinsky.

Core Value Partners won bankruptcy court approval in Delaware on Nov. 25 to acquire AmeriKing’s restaurants in the Greater Chicago, Wisconsin, Michigan and Indiana markets. The purchase price was $13.2 million in cash and included no debt.

The closing of the sale is scheduled for December 18.

Core Value Partners has catapulted in its first year to beat out several other fast food franchisees and private equity funds to win the bid, including its Miami neighbor, Trivest. Core Value Partners has been pursuing the AmeriKing outlets since last May. On Oct. 2, the private equity firm, through its affiliate, Heartland Food Corp., was designated the “stalking horse” in the Chapter 11 case, leading the way to the winning bid

“This market of primarily Hispanic and African-American consumers is of particular interest to us since the principals of Core Value Partners together with its operating partner, Al Cabrera, who is a seasoned Burger King franchisee and President of the Hispanic Franchisee Associaton, have extensive experience in marketing to this customer base,” said Joseph DaGrosa, senior partner of Core Value Partners.

AmeriKing, which operated 329 Burger King restaurants as of December 2002, filed for Chapter 11 protection that month due to a combination of fast growth with high leverage and declining fast food sales. At the time of the bankruptcy filing, AmeriKing listed assets of about $223 and liabilities of $291 million. However, the current deal for the franchisee is seen as coming at a good time since the new owners of Burger King Corporation, The Texas Pacific Group and its partners, Goldman Sachs and Bain Capital, are committed to rebuilding the Burger King brand name.