DALLAS – Brinker International Inc. has entered into a purchase agreement with OTB Acquisition LLC, an affiliate of Golden Gate Capital, to sell its On The Border Mexican Grill & Cantina brand. Terms of the transaction were not disclosed.
The transaction is expected to close by the end of fiscal 2010. Brinker anticipates recording a gain upon completion of the transaction.
"On The Border is well positioned to build on its current success and we are confident it will be a great addition to the Golden Gate portfolio," said Doug Brooks, chairman and chief executive officer of Brinker International. "This decision enhances long-term value for our shareholders and we believe that On The Border will continue to thrive under new ownership."
"On The Border is a strong leader in Mexican Casual Dining," added Joshua Olshansky, a managing director at Golden Gate Capital. "We are enthusiastic about the company's significant growth opportunities and we are very pleased to partner with the On The Border team to continue the success of the brand."
Golden Gate Capital is a San Francisco-based private equity firm. Over the last five years, it has completed more than 20 acquisitions in the specialty retail and restaurant sectors with combined annual revenue in excess of $4 billion, including such brands as Romano's Macaroni Grill, Express, Eddie Bauer, and J. Jill.
Brinker International Inc. is a leading global casual dining restaurant company. It owns, operates, or franchises 1,704 restaurants under the names Chili's Grill & Bar (1,499 restaurants), On The Border Mexican Grill & Cantina (160 restaurants) and Maggiano's Little Italy (45 restaurants).