Yum! Brands has entered into a definitive agreement to acquire all the issued and outstanding common shares of The Habit Burger Grill for $14 per share in cash or a total of approximately $375 million. The board of directors of The Habit Burger Grill, acting on the recommendation of a special committee composed of non-executive independent directors, has unanimously approved the transaction.
The acquisition of The Habit Burger Grill will add an award-winning fast-casual concept to Yum! Brands, the parent of the KFC, Pizza Hut, and Taco Bell global brands. Founded in California in 1969, The Habit Burger Grill offers a variety of made-to-order items chargrilled over an open flame. The Habit Burger Grill operates nearly 300 company-owned and franchised restaurants across the United States and in China.
“As a fast-casual concept with strong unit economics, The Habit Burger Grill is a fantastic addition to the Yum! family and has significant untapped growth potential in the United States and internationally,” said David Gibbs, CEO of Yum! Brands, in a company press release. “With its delicious burgers and fresh proteins chargrilled over an open flame, The Habit Burger Grill offers consumers a diverse, California-style menu with premium ingredients at a QSR-like value. The transaction is a win-win because it allows us to offer an exciting new investment to our franchisees and to expand an award-winning, trend-forward brand through the power of Yum!’s unmatched scale and strengths in franchising, purchasing and brand-building.”
The transaction is subject to approval by The Habit Burger Grill’s stockholders, regulatory approval, and other customary closing conditions. The transaction is expected to be completed by the end of the second quarter of 2020.
Following the closing of the transaction, The Habit Burger Grill will remain based in Irvine, Calif., and will continue to be managed by The Habit Burger Grill’s President and CEO Russell Bendel and Chief Financial Officer Ira Fils. Bendel will report directly to Gibbs.
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