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Bloomin’ Brands weighing up potential sale
Posted on Thursday, 07 November 2019 13:45
US-based restaurant operator Bloomin’ Brands is considering strategic alternatives, which could include a potential divestment of the business.
The group has not set a timeline for the completion of the process and warned there is no guarantee of any transaction taking place.
Bloomin’ Brands also stated it will not make any further public announcements on the matter unless it is appropriate or necessary to do so.
Headquartered in Tampa and established in 1988, the group owns and operates restaurant chains across the US.
Its portfolio includes the likes of Bonefish Grill, Fleming’s Prime Steakhouse & Wine Bar and Carrabba’s Italian Grill.
Bloomin’ Brands’ chief executive, David Deno, said the exploration of strategic options has been fuelled by its current stock price not matching the value of the business, despite the group improving its operating margins and international growth in recent years.
The company’s shares closed up to USD 23.28 yesterday, giving the business a market capitalisation of USD 2.02 billion.
For the nine months ended 30th September 2019, it posted revenue of USD 3.12 billion, up slightly from USD 3.11 billion in the corresponding period of 2018.
News of a potential divestment comes just months after Jana Partners, which holds a 9.0 per cent stake in Bloomin’ Brands, was reportedly piling on the pressure for the business to sell part or all of the company back in August.
The investor declined to comment when contacted by Reuters.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been 477 deals targeting full-service restaurant operators announced worldwide since the beginning of 2019.
The largest of these featured Leo Holdings agreeing to buy US-based CEC Entertainment for USD 1.40 billion in April.
Other companies in the sector to have been targeted in the last ten months include Jack’s Family Restaurants, Hana Group and P F Chang’s China Bistro.
© Zephus Ltd