Bob Evans Farms, Inc. announced definitive agreements for the sale of Bob Evans Restaurants and the purchase of Pineland Farms Potato Company, enabling the company to focus on driving growth of BEF Foods.
BEF Foods is acquiring Pineland Farms Potato Company for $115 million using new borrowings. The purchase price may be increased if certain financial metrics are achieved during a 24-month period after closing.
Mike Townsley, president, BEF Foods, will assume the role of president and chief executive officer of Bob Evans Farms, Inc. following the closing of the Bob Evans Restaurants transaction.
Golden Gate Capital will acquire Bob Evans Restaurants for $565 million plus assumption of certain net working capital liabilities. Net proceeds of $475 to $485 million expected.
Net proceeds of the Bob Evans Restaurants transaction expected to be used for repayment of outstanding indebtedness and payment of a special dividend of approximately $150 million ($7.50 per share) within approximately 60 days following closing.
Both transactions are expected to close by the end of fiscal 2017 (April 28, 2017)