New Albany-based Bob Evans says it's selling all of its restaurants to a California-based equity firm for $565 million.
The sale to Golden Gate Capital also includes the transfer of debt and a one-time dividend for stock holders.
Bob Evans also says it's buying Maine-based potato company Pineland Farms for $115 million and will focus exclusively on its prepackaged foods sold in grocery stores.
A Bob Evans press release said:
Bob Evans Restaurants has announced Golden Gate Capital, a recognized national private equity firm with deep expertise in the restaurant industry, has entered into an agreement to purchase the restaurant business. The announcement positions the prominent national restaurant brand for continued growth and strategic development, while retaining Bob Evans Restaurants’ leadership team to guide the company through the transition and beyond. “This is an important time for our brand, our company and our team, and this partnership will provide Bob Evans Restaurants with the resources, knowledge and flexibility needed to drive our growth, while remaining true to the values of our founder, Bob Evans,” said Saed Mohseni , CEO of Bob Evans Farms, Inc. “This company already has made tremendous progress in updating every aspect of the guest experience, and our relationship with Golden Gate Capital greatly enhances those opportunities, while maintaining business as usual for our employees and guests.” Mohseni will assume the role of CEO of Bob Evans Restaurants following the transition. Mohseni said the company’s executive team, including Bob Evans Restaurants President John Fisher, will remain in place to oversee the transition and following the completion of the transaction. The company will be headquartered in its current location in New Albany (Columbus), Ohio.
Bob Evans moved its headquarters from Columbus' South Side to New Albany in 2011. The company has seen declining store sales in recent years and in 2016 closed 27 "underperforming" stores, including two in Ohio.
