SAN FRANCISCO (Thomson Financial) - IHOP Corp. late Wednesday said it has
agreed to sell 41 company-operated Applebee's restaurants in Southern California
and Nevada to Apple American Group LLC for an undisclosed sum.
The deal is separated by market into two definitive asset purchase
agreements, the company said.
The agreements provide for future franchise restaurant development in the
markets, which could result in the development of as many as 14 new Applebee's
restaurants in Southern California and Nevada by the end of 2012, the Glendale,
Calif.-based restaurant company said.
The transactions are expected to be completed on separate closing dates in
the coming months, pending closing conditions.
IHOP also said it remains confident in its expectations of selling about 100
company-operated Applebee's restaurants and generating a total of $90 million to
$100 million in after-tax cash proceeds in fiscal 2008.
The company also said its objective is to end fiscal 2008 with as many as 60
additional purchase commitments for Applebee's company-operated restaurants,
which would be expected to close sometime in early 2009.
IHOP's shares closed the regular session down $1.32, or about 2.7%, at
$46.79.
Katherine Hunt
kh
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