Bob Evans reaches purchase and sales agreements for 145 restaurants
Feb. 29, 2016
by MEAT+POULTRY Staff
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Bob Evans will be making changes to 145 restaurants across the United States.
New Albany, Ohio – Bob Evans Farms announced on Feb. 26 that it entered into purchase and sale agreements with National Retail Properties, LP, an affiliate of National Retail Properties, Inc. and Mesirow Realty Sale-Leaseback, Inc.
The purchase price was set at $163.4 million by Bob Evans Restaurants to National Retail. This includes 119 Bob Evans restaurant properties. The Mesirow purchase price for the Bob Evans restaurants was $36.6 million for 26 properties.
“The sale-leaseback transactions are expected to provide the company with net proceeds (after tax- and transaction-related costs) of approximately $165 to $170 million, which we expect to use to pay down debt under the company’s credit agreement, repurchase company shares, and for other corporate purposes, while maintaining prudent leverage, said Mark Hood Bob Evans Farms chief administrative and CFO. “The transactions are expected to close before the end of the company’s fiscal year-end on April 29, 2016.”
Both Mesirow and National Retail are subject to completions of due diligence and certain customary closing conditions. Also included in the transaction was an agreement by Bob Evans and the two companies on absolute net master leases that have an opening term of 20 years, with five renewal options of five years each.