Bob Evans is selling every single one of its more than 500 full-service restaurants nationwide.
Golden Gate Capital, a private equity investment firm, agreed to buy the restaurants for $565 million plus assumption of certain net working capital liabilities. Net proceeds are expected to be $475 to $485 million.
Based in San Francisco, Golden Gate Capital also owns California Pizza Kitchen and Red Lobster.
Bob Evans to sell restaurant division
In a statement, Bob Evans said it’s selling the struggling restaurants to focus exclusively on its food division, which is its fastest growing and most profitable segment. The company sells refrigerated food items at grocery stores, like sausages and potatoes.
“Bob Evans Restaurants has made tremendous progress over the last few years as our teams have strived to upgrade every aspect of the guest experience,” said Bob Evans President and CEO Saed Mohseni. “We believe our talented restaurant teams, combined with Golden Gate Capital’s industry expertise and significant resources, positions Bob Evans Restaurants well for realizing its full potential.”
Mohseni will continue to lead the restaurants after the transaction is completed.
In an interview with Columbus Business First, Mohseni said he doesn’t expect that Bob Evans will close any more restaurants after shutting down a couple dozen locations over the past two years.