Local Hooters franchise Texas Wings sells 45 restaurants for $106 million

by PegNews wire

DALLAS — Texas Wings Incorporated announced today that it has entered into an Asset Purchase Agreement to sell their 45 Hooters branded restaurants to Chanticleer Holdings, Inc. for total consideration of approximately $106 million, including $53 million in cash, $37 million in Chanticleer common shares and a $16 million convertible seller's note.

Chanticleer will combine Texas Wings with Hooters, Inc. (HI) and their 22 Hooters restaurants, which Chanticleer agreed to acquire on March 7, 2008, to create one operating company. Texas Wings is the strongest franchisee in the Hooters restaurant system and when combined with HI, which was the original creator of the Hooters concept, together they will form the standard bearer for the Hooters brand.

The transaction is subject to a number of customary closing conditions and is anticipated to close during the 3rd quarter of 2008, concurrently with the closing of the HI acquisition. The final purchase price will be determined after the completion of the 2007 fiscal year audit.

Chanticleer CEO, Mike Pruitt remarked, “This Transaction will combine two of the strongest licensors in the Hooters network totaling 67 restaurants including twelve of the top twenty grossing restaurants in the entire system. These two transactions will give us an excellent platform for expansion, over $200 million in annualized revenue, and are in the best long-term interest of the restaurants, our outstanding employees, and all stockholders.”

Source: Texas Wings