OVERLAND PARK, Kan. – The system optimization initiative launched by The Wendy’s Company continues with the sale of 39 restaurants to NPC International Inc. The deal is expected to close late July 2016 subject to customary closing conditions.
NPC entered into an agreement with a Wendy’s subsidiary to purchase 35 restaurants for $29.2 million plus amounts for working capital. NPC also agreed to acquire four restaurants recently constructed by Wendy’s for an additional $7.4 million. The units are in the Raleigh-Durham, North Carolina, metropolitan areas.
“We are excited to participate in Wendy’s system optimization initiative and further our growth in the Wendy’s system,” Jim Schwartz, chairman and CEO of NPC, said in a statement. “This highly coveted market will leverage our existing Wendy’s infrastructure and is contiguous with our current Winston-Salem and Greensboro Wendy’s operations. This acquisition will be our fifth acquisition in the Wendy’s system since 2013 and will increase our holdings to 183 restaurants with revenues exceeding $260 million, or approximately 22 percent of our total consolidated revenues.”
NPC said 35 of the units generated approximately $59 million in net product sales during the 52 weeks ended Jan. 3, 2016. NPC Quality Burgers Inc., a subsidiary of NPC International, will own and operate the acquired restaurants. NPC also plans to remodel certain units in Wendy’s new Image Activation format.
In 2013, Wendy’s announced plans to reduce its ownership of restaurants to 15 percent from 25 percent through the sale of roughly 425 company owned restaurants. In the same year, NPC acquired 54 Wendy’s restaurants in Salt Lake City, Utah, for $30.4 million.