Red Robin Completes Acquisition of 32 Franchised Restaurants in the United States and Canada
- July, 17 2014
- Red Robin
Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) announced it has completed the acquisition of 32 Red Robin® franchised restaurants in the United States and Canada, for approximately $40 million from Mach Robin, LLC and Mach Robin, LLC’s Canadian affiliate. Mach Robin, LLC is a subsidiary of 5B Investments, Inc.
“This acquisition is a significant step in support of our expansion strategy. We are pleased to have completed this acquisition and to welcome over 2,000 team members to engage our guests in these new corporate locations,” said Steve Carley, Red Robin Gourmet Burgers, Inc. chief executive officer. “Our plan is to employ the same strategic approach to enhance the acquired operations that we utilized so successfully across our corporate-owned restaurants. Most importantly, we intend to respect Mach Robin’s long-standing guests and make decisions that will further cement their relationship and affinity for our brand.”
The 14 U.S. restaurants are located in Illinois, Idaho, Nevada, New Mexico, and Utah. The 18 Canadian restaurants are located in the provinces of British Columbia and Alberta. The Company plans to maintain the Canadian office in Vancouver, British Columbia.
The acquisition price was paid in cash using borrowings under the Company’s credit facility. The Company will provide additional information with regards to the transaction when it reports results of the fiscal second quarter ended July 13, 2014.
Red Robin Gourmet Burgers, Inc. (www.redrobin.com), a casual dining restaurant chain founded in 1969 that operates through its wholly-owned subsidiary, Red Robin International, Inc., is the Gourmet Burger Authority™, famous for serving more than two dozen craveable, high-quality burgers with Bottomless Steak Fries® in a fun environment welcoming to guests of all ages. In addition to its many burger offerings, Red Robin serves a wide variety of salads, soups, appetizers, entrees, desserts, and signature Mad Mixology® Beverages. Red Robin offers a variety of options behind the bar, including its extensive selection of local and regional beers, and innovative adult beer shakes and cocktails, recently earning the restaurant the 2014 VIBE Vista Award for Best Beer Program in a Multi-Unit Chain Restaurant. There are nearly 500 Red Robin® restaurants across the United States and Canada, including Red Robin’s Burger Works® locations and those operating under franchise agreements.
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