Last Tuesday Dallas-based Taco Bueno Restaurants LP announced that it filed a voluntary petition for Chapter 11 bankruptcy protection with the U.S. Bankruptcy Court for the Northern District of Texas. The franchising firm plans to reorganize and emerge from insolvency under a prepackaged plan where multi-concept franchisee Sun Holdings will take over.
Mergers & Acquisitions
News about company buy outs and mergers
ARC Group, Inc. (OTC:ARCK) announced on Tuesday that it will acquire the troubled Tilted Kilt Pub and Eatery from SDA Holdings, LLC for $10. However, ARC will assume Tilted Kilt’s debt of $1.8 million and future liabilities of $1.5 million. It will also issue 1.4 million in stock. For its obligations, ARC acquires a brand of 42 restaurants from California to New York that last year generated revenues of almost $14 million.
Four private equity firms and a hedge fund have been named as strong buyout contenders for Papa John’s. Its stock price has ranged from $69.45 to $38.05 over the last 12 months, and its recent low prices on the bottom end of that range are said to have piqued the interest of investors.
Founder John Schnatter, who regrets resigning as the company’s chairman in July and has been publicly battling the company since then, still owns 30 percent of the company.
Founded in 1870 by Louis Charles Graeter and his wife Anna, fourth-generation-owned Graeter’s Ice Cream Co. has completed the purchase of 11 locations from its last remaining franchisee, Tedesco LLC. Cincinnati, Ohio-based Graeter’s has over 54 units in Kentucky, Indiana, Illinois, Ohio and Pennsylvania.
CEO Rich Graeter told me [Hannah McCartney, data editor, Cincinnati Business Courier] the buyback was for one simple reason: "Nobody can run a store with your name on it as well as you do."
Inspire Brands, the restaurant arm of private equity firm Roark Capital, announced that it will acquire Sonic Corp for approximately $2.3 billion.
Philippines-based Jollibee Foods Corporation informed the U.S. Securities and Exchange Commission that it has acquired a 47-percent ownership in Tortas Frontera for US$12.4 million in cash.
Planet Fitness’ largest franchisee, United PF Partners, announced yesterday that it has completed its acquisition of 19 clubs around Phoenix, Arizona. The large multiunit franchisee says that the acquired clubs can use some of their new capital to improve their facilities.
Home service franchisor Dwyer Franchising announced on August 14 that it acquired Mosquito Joe, a franchisor of over 285 insect control franchises.
ServiceMaster announced today that it has approval to spin off its American Home Shield Business subsidiary that issues home warranties. It will be rolled into a new publicly traded company called Frontdoor.