Houston Foods Inc., a fast-food franchisee in Texas, plans to buy about 260 Burger King locations owned by Blackstone Group LP’s Heartland Food Corp. in the Midwest, according to a person with knowledge of the matter.
Blackstone, which acquired Heartland through its GSO Capital Partners LP unit, agreed to sell the restaurants for less than US$100 million, said the person, who asked not to be identified because the deliberations are private. Blackstone bought GSO, a credit manager run by Bennett Goodman, in 2008.
Heartland, based in Downers Grove, Illinois, owns about 330 Burger King locations in eight Midwestern states. Last month, Carrols Restaurant Group Inc., the largest Burger King franchisee, said it was buying 64 of Heartland’s restaurants in Tennessee, Indiana and Illinois for about US$18 million. Heartland has reported annual sales of more than US$420 million, according to its website.
Blackstone, a New York-based private-equity firm, is using the…
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