Key Developments: DineEquity Inc (DIN.N)
3 Dec 2013
Latest Key Developments (Source: Significant Developments)
DineEquity Inc Announces The Sale Of 39 Applebee’s Company-Operated Restaurants In Virginia To Potomac Family Dining Group, LLC
DineEquity Inc announced that it has entered into an asset purchase agreement with Potomac Family Dining Group, LLC for the sale of 39 Applebee's company-operated restaurants located in Virginia. The agreement does not contain financing contingencies, but closing is subject to regulatory processes related to liquor license transfers and other customary closing conditions. The transaction is expected to result in net proceeds after taxes of approximately $25 million and reduce DineEquity's sale-leaseback related financing obligations by approximately $40 million. The Company expects to pay approximately $6 million related to the settlement of net working capital liabilities and deal costs. Additionally, the sale of these Applebee's company-operated restaurants will result in approximately $1.6 million in annualized general and administrative savings. The Company anticipates closing the transaction in the third quarter of 2012. Upon consummation of the pending sales of 39 additional Applebee's company-operated restaurants, as detailed in this news release, 96% of DineEquity's restaurants will be franchised. Full Article
DineEquity Inc, the parent company of Applebee's Neighborhood Grill & Bar and IHOP Restaurants announced it has signed a 10-year contract with PepsiCo, Inc. to be the exclusive non-alcoholic beverage provider in the majority of soft-drink categories for its more than 1,800 Applebee's and 1,500 IHOP restaurants throughout the U.S. As part of this agreement, Applebee's and IHOP patrons will now be able to enjoy a variety of PepsiCo beverages with their meals, including Pepsi, Diet Pepsi, Mountain Dew, Sierra Mist, Mug Root Beer and Tropicana lemonade. Full Article
- DineEquity Inc said its costs nearly halved in the third quarter after it sold more of its Applebee's and IHOP restaurants to franchisees, following a model that has helped U.S. restaurant chains through an economic downturn.