Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB), a casual dining restaurant chain focused on serving an innovative selection of high-quality gourmet burgers in a family-friendly atmosphere, today announced it has signed purchase agreements to acquire 32 Red Robin franchised restaurants in the United States and Canada, for approximately $40 million. The acquisition is expected to close late summer 2014 pending completion of certain closing conditions.
“We are excited for the opportunity to acquire a group of established Red Robin restaurants and welcome the over 2,500 team members who have been instrumental to their success in these markets,” said Steve Carley, Red Robin Gourmet Burgers, Inc. chief executive officer.
The 14 U.S. restaurants, currently owned by Mach Robin, LLC, are located in Illinois, Idaho, Nevada, New Mexico and Utah. The 18 Canadian restaurants, currently owned by Mach Robin, LLC’s Canadian affiliate, are located in the provinces of British Columbia and Alberta, where Red Robin franchises have been operating since 1985. The current owners are subsidiaries of 5B Investments, Inc. The Company plans to maintain the corporate office in Vancouver. The acquired restaurants are expected to generate combined annual revenues of approximately $88 million.
All of the Red Robin restaurants being acquired will remain open for business during the transition, continuing to bring loyal Guests the craveable burgers and signature beverages they have come to expect from Red Robin.
Management will discuss the transaction in further detail on the first quarter 2014 earnings conference call, which will be held on May 20, 2014.
