Brinker International, Inc. announced today that it has entered into a purchase agreement with Mac Acquisition LLC, an affiliate of Golden Gate Capital, for the sale of a majority interest in Romano’s Macaroni Grill. Golden Gate Capital is a San Francisco-based private equity firm.
Per terms of the agreement, Brinker will receive $131.5 million in cash, of which $6 million will be contributed to Mac Acquisition LLC. Brinker will retain a 19.9 percent continuing ownership interest in the brand. The transaction is expected to close by the end of the calendar year upon completion of customary closing procedures.
As a result of the transaction, Brinker’s cash from operations will increase due to the cash tax benefit related to the sale producing a free cash flow yield for the company ranging from nine to 10 percent for fiscal 2009. Also, the company will record an additional impairment, net of taxes, ranging from $42 to $47 million which will be reflected in the fiscal 2008 Form 10-K filing.
Brinker International Announces Agreement To Sell Majority Interest In Romano’s Macaroni Grill(R) To Golden Gate Capital
August 20, 2008 by Cris | 0 Comments
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