Apple South Acquires 18 Applebee's Restaurants for Approximately $48 Million

Strategic Insights -

Apple South, Inc., the largest operator of Applebee's Neighborhood Grill and Bar restaurants, has signed a contract to acquire 18 Applebee's restaurants and related franchise rights from The Marcus Corporation for approximately $48 million in cash. The agreement, subject to approval by Applebee's International, includes exclusive rights to develop other Applebee's restaurants in a territory covering the metropolitan Chicago area, most of Wisconsin, and contiguous counties in Minnesota and Michigan.

Key Takeaways:

  • Apple South is acquiring 18 Applebee's restaurants and related franchise rights from The Marcus Corporation for approximately $48 million in cash.
  • The agreement is subject to approval by Applebee's International, which is expected to be resolved within the next 30 days.
  • The acquisition includes exclusive rights to develop other Applebee's restaurants in a territory covering the metropolitan Chicago area, most of Wisconsin, and contiguous counties in Minnesota and Michigan.
  • Apple South currently operates a total of 166 restaurants, including 139 Applebee's, 16 Italian-themed restaurants, and 10 Hardee's.
  • The Marcus Corporation will use the funds from the sale to expand their theatre, lodging, and other restaurant operations.
  • The acquisition will benefit employees by providing them with opportunities to participate in the continued growth of the Applebee's system.
  • The Marcus Corporation operates 104 Budgetel Inns, three Woodfield Suites, 197 movie screens, 35 KFC restaurants, and other establishments.

Statistics:

  • 18 Applebee's restaurants and related franchise rights being acquired by Apple South.
  • $48 million in cash to be paid by Apple South for the acquisition.
  • 30 days expected time frame for Applebee's International to approve the agreement.
  • 166 total restaurants operated by Apple South.
  • 139 Applebee's restaurants operated by Apple South.
  • 16 Italian-themed restaurants operated by Apple South.
  • 10 Hardee's restaurants operated by Apple South.
  • 104 Budgetel Inns operated by The Marcus Corporation.
  • 197 movie screens operated by The Marcus Corporation.

Sources:

  • Business Wire, May 1, 1995
  • Apple South Inc. - Madison, Ga.