An investment fund that owns the Perkins Restaurant & Bakery chain said Monday that it was negotiating to buy Marie Callender's Restaurant & Bakery, known for its freshly baked pies.
The terms of the possible transaction were being negotiated. Both companies are controlled by investment funds managed by Castle Harlan Inc., a New York-based private equity firm.
Castle Harlan said the transaction would be a stock-for-stock exchange. Restaurant Co., the operator of Perkins, would repay Marie Callender's debt with a $100-million loan secured by the assets of the combined business.
Joseph Trungale, chief executive of Memphis, Tenn.-based Restaurant Co., would become chief executive of the combined company. Phillip Ratner, chief executive of Aliso Viejo-based Marie Callender's, is expected to continue to run that part of the operation.