Red Robin Purchases California Franchises

MSN Money:

Restaurant operator Red Robin Gourmet Burgers Inc. on Thursday said it completed its acquisition of 15 of the 17 franchised Red Robin restaurants in California for $41.9 million, effective June 18.

Red Robin also paid $320,000 for the assumption of working capital.

The cash purchase price was funded by borrowings under the company’s new $300 million amended credit facility.

Red Robin also assumed management of the remaining 2 restaurant locations owned by Top Robin Ventures and complete their acquisition when it finalizes acceptable real-estate lease terms and liquor license transfers. The total purchase price will be $47.5 million for all 17 existing restaurants.

Red Robin also plans to buy another restaurant under construction in Fresno, Calif., when it opens in July.