Dallas-based Brinker completes sale of Romano’s Macaroni Grill

by PegNews wire

Brinker International and Mac Acquisition LLC, an affiliate of San Francisco-based Golden Gate Capital, closed the previously announced transaction for the sale of a majority interest in Romano's Macaroni Grill.

"We greatly appreciate the hard work, patience and tenacity our respective teams exhibited to finalize this complex transaction," said Chuck Sonsteby, Chief Financial Officer of Brinker International. "The ability to complete the transaction in the midst of the current economic environment speaks to the long-term prospects for the brand as part of the Golden Gate family."

With the closing complete, Golden Gate Capital and its affiliates own 80.1 percent of Mac Acquisition LLC while Brinker affiliates hold a 19.9 percent ownership interest. The transaction purchase price totaled approximately $88 million. Cash proceeds from the sale of approximately $130 - 135 million will be used to pay down outstanding bank debt. The company's bank agreement financial covenants for the first quarter of FY '09 are available online at www.brinker.com under the Investor section. Pre-tax charges in the range of $35 - 40 million related to this transaction will be reflected in the second quarter financials.

As part of the transaction, Brinker will continue to provide transition services for a minimum of one year and Romano's Macaroni Grill restaurants will continue to participate in Brinker's gift card program. Additionally, Doug Brooks, Chairman and Chief Executive Officer of Brinker International, will serve on the Board of Directors of Mac Acquisition LLC.

Source: Brinker

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