DineEquity strikes deal to sell 65 Applebee's to franchisee

July 25 Wed Jul 25, 2012 7:59am EDT

July 25 (Reuters) - DineEquity Inc said on Wednesday it has agreed to sell 65 company-owned Applebee's restaurants in Michigan to TSFR Apple Venture LLC.

DineEquity said the sale of the restaurants is expected to bring in after-tax net proceeds of about $61 million and reduce its sale-leaseback related financing obligations by around $38 million. The sales are subject to regulatory approval.

When this and other pending deals close later this year, the company will have completed its plan to sell 510 U.S. company-operated Applebee's restaurants it acquired in 2007 to franchisees.

DineEquity said it would retain ownership of 23 Applebee's test market restaurants.