Bob Evans Farms Inc. announced the completion of its sale of Bobs Evans Restaurants to Golden Gate Capital.
Ohio-headquartered Bob Evans sold its restaurant to the private equity firm for $565 million. Golden Gate Capital has bought the restaurant chain, and will retain the Bob Evans leadership team to guide the transition as it takes part of the company private, the company said. Net proceeds are expected to be between $475 million and $485 million, according to a company statement.
“We are excited to have successfully completed the acquisition of Bob Evans Restaurants, officially beginning our partnership with this exceptional brand as it enters an exciting new chapter,” said Josh Cohen, managing director at Golden Gate Capital. “We are confident that Bob Evans Restaurants’ heartfelt hospitality and farm-fresh quality are key differentiators in today’s family dining space and we look forward to continuing to work with Saed Mohseni and the rest of the management team to support the organization’s long-term growth.”
» Bob Evans CEO: Restaurants will remain open
The transaction splits the company in half. Bob Evans Farms food division, which makes mashed potatoes, sausage and various side dishes, will become a standalone company. The sale of the restaurant comes months after the company announced it would close 27 locations back in April, including one in Riverside.
Following the completion of these transactions, Bob Evans repaid outstanding indebtedness with proceeds from the sale of Bob Evans Restaurants and established a $300 million credit facility maturing April 28, 2022, according to a company statement.
FIVE FAST BUSINESS READS