Red Robin Gourmet To Buy 32 Franchised Restaurants In U.S. & Canada

(RTTNews) - Red Robin Gourmet Burgers Inc. (RRGB) reported signing purchase agreements to acquire 32 Red Robin franchised restaurants in the U.S. and Canada, for about $40 million. The deal may close late summer 2014 pending completion of certain closing conditions.

The 14 U.S. restaurants, owned by Mach Robin, LLC, are located in Illinois, Idaho, Nevada, New Mexico and Utah. The 18 Canadian restaurants, currently owned by Mach Robin, LLC's Canadian affiliate, are situated in the provinces of British Columbia and Alberta, where Red Robin franchises have been operating since 1985. The current owners are subsidiaries of 5B Investments, Inc.

Further, the company intends to maintain the corporate office in Vancouver. The acquired restaurants are likely to generate combined annual revenues of some $88 million. The Red Robin restaurants being acquired would remain open for business during the transition.