Dine Manufacturers International, Inc. (NYSE: DIN), the mum or dad firm of Applebee’s Neighborhood Grill + Bar and IHOP eating places, at present introduced that it has agreed to amass Fuzzy’s Taco Store (“Fuzzy’s”) from Experiential Manufacturers LLC, an entirely owned subsidiary of NRD Holding Firm, for $80 million in money. Fuzzy’s is a fast-casual restaurant idea serving Mexican favorites with a Baja twist. The transaction is predicted to be instantly accretive to earnings. Web of tax advantages, the acquisition value is roughly $70 million.
Based in 2003 in Fort Value, Texas, Fuzzy’s is a class innovator, providing a brand new twist on Mexican favorites at a price value level. With a clearly outlined and compelling model, Fuzzy’s is competitively differentiated with robust client consciousness and web promoter scores. Fuzzy’s is led by a powerful administration staff, together with Chief Government Officer Paul Damico, a 35-year business veteran at FOCUS Manufacturers, Moe’s Southwest Grill, and International Franchise Group. Paul has been profitable within the sustained progress of the model and can proceed to drive the way forward for Fuzzy’s beneath the Dine Manufacturers umbrella.
“Fuzzy’s Taco Store is a compelling enterprise with a loyal buyer base and a definite identification. It’s a horny asset with an amazing progress trajectory and will probably be a complementary addition to our extremely franchised portfolio,” stated John Peyton, Chief Government Officer of Dine Manufacturers. “By including Fuzzy’s to the Dine Manufacturers household, we’re investing in a excessive progress idea as a part of our longer-term progress agenda, which is aligned with our technique to construct shareholder worth.”
Peyton continued, “Paul and his staff have finished an amazing job making a stable basis for the enterprise, as evidenced by its enticing monetary profile and differentiated model positioning inside its phase. We’re desirous to work with Paul and his management staff as we execute on accelerating Fuzzy’s progress.”
Fuzzy’s, with 138 eating places in 18 states, has long-term improvement agreements presently in place to almost double its present restaurant base over time. 98% of Fuzzy’s present system is franchised and its robust unit economics entice franchisees to open extra eating places. The model is predicted to generate roughly $230 million in systemwide gross sales in 2022.
A supplemental presentation with extra particulars on the transaction is accessible at traders.dinebrands.com.
“I’m extremely pleased with the work the Fuzzy’s staff and franchisees have completed over the previous few years, which has enabled us to enter this new chapter of progress along with Dine Manufacturers,” stated Paul Damico, CEO of Fuzzy’s Taco Store. “With Dine Manufacturers’ substantial business sources, we will probably be properly positioned to construct upon our confirmed successes and speed up our progress.”
Centerview Companions LLC acted as unique monetary advisor and Sidley Austin LLP acted as authorized advisor to Dine Manufacturers on the transaction. Arlington Capital Advisors served as unique monetary advisor to Fuzzy’s Taco Store and Cheng Cohen LLC served as authorized advisor to Fuzzy’s Taco Store and NRD Holding Firm on the transaction.
