TGI Fridays and its U.K. franchisee, Hostmore, announced a merger on Tuesday.
The all-share acquisition is worth 177 million pounds, or $220 million. If it shuts, TGI Fridays, most known for its potato skins, chicken wings, and unending appetizers, will go public on the London Stock Exchange under the ticker "TGIF."
Dallas, Texas, will continue to serve as the company's headquarters for its US and global brand activities. Weldon Spangler, the company's CEO since October, will continue in his present post.
"This transaction represents the next step in our journey as it increases our corporate-owned restaurant locations and provides capital to expand our presence globally," Spangler said in a press release.
The new firm will own 189 restaurants in the United States and he United Kingdom, the firms stated. Franchisees would run the remaining about 400 stores in the chain's worldwide network, which includes 44 nations.
If allowed by regulators, the merger is scheduled to be completed in the third quarter.
TriArtisan Capital Advisors purchased TGI Fridays from longstanding owner Carlson Restaurants in 2014 for an estimated $800 million. TriArtisan also has holdings in P.F. Chang's and Hooters.
In 2019, TGI Fridays announced intentions to go public through a merger with a special purpose acquisition company, but the transaction fell apart when the Covid-19 epidemic roiled financial markets and the restaurant sector.
According to franchise disclosure filings filed in the United States, TGI Fridays' sales increased 3.6% to $75.2 million in 2022. But the bar-and-grill chain has been trapped. Shopping malls are declining, and customers are leaving the casual-dining market.
Earlier this year, TGI Fridays shuttered 36 underperforming stores across the United States. According to the firms, the purchase, which is slated to completion in the third quarter of 2024, would provide the casual-dining restaurant operator with operational and financial flexibility, as well as additional scale and cash to produce ongoing income. The merged business would trade on the London Stock Exchange under the ticker symbol "TGIF."
TGI Fridays reported $1.4 billion in systemwide revenues in 2023.
Once the acquisition is completed, the new merged firm will be known as TGI Fridays plc. The brand's U.S. and worldwide operations will continue to be based in Dallas under the supervision of current CEO Weldon Spangler, according to the brand.
The merged firm would have 189 corporate-owned restaurants in the United States and the United Kingdom, totaling over 600 eateries in 44 countries.
During January, TGI Fridays said that it would close 36 failing U.S. outlets and sell eight to its previous CEO.
"We have been laser focused on revitalizing the brand and driving growth through consumer-centric offerings, the optimization of our restaurant portfolio and the addition of senior team members," Spangler wrote in an e-mail. "This transaction represents the next step in our journey as it increases our corporate-owned restaurant locations and provides capital to expand our presence globally."
Stephen Welker, the chairman of Hostmore, stated: "This acquisition would give us the scale and flexibility to accelerate our existing strategy and enhance the financial outlook for Hostmore and scope for shareholder returns."
TriArtisan Capital Advisors, a private equity business located in the United States, controls TGI Fridays and owns investments in other P.F. Chang's China Bistro is a globally known eating brand, as is Hooters of America, a sports bar, media, and entertainment corporation.
Writing By Elara Elii
Head Editor & Chief : Kennedy Lucas Patterson
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