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BBQ Holdings to eat up Granite City’s assets
Posted on Friday, 14 February 2020 11:59
BBQ Holdings has agreed to acquire the assets of US-based restaurant chain operator Granite City Food & Brewery, which filed for chapter 11 bankruptcy last year.
No financial details have been disclosed and media reports stated the company has no plans to rebrand the business.
Established in 1999, Granite City operates a range of casual dining restaurants across the US.
The company is known for its award-winning beers, including the Duke, the Batch, as well as other seasonal brews.
Headquartered in Minnesota, it also provides online catering services and private event functions.
Granite City has 30 restaurants in 13 states, according to its website.
During the six months ended 25th June 2019, the group generated revenue of USD 65.38 million, down 4.9 per cent from USD 68.76 million in the corresponding period of 2018.
Net loss widened to USD 4.31 million in the same timeframe, compared to a loss of USD 1.84 million in Q1-Q2 2018.
Granite City filed for chapter 11 in December, following a strategic review of its business.
At the time, the group stated its restructuring plans could only be achieved through the bankruptcy process.
Jeff Crivello, chief executive of BBQ Holdings, said: “This meaningfully accretive acquisition of Granite City aligns with our strategy to accelerate growth and expansion as a multi-brand restaurant company.”
Recently, the buyer has opened several eateries in Oklahoma, Utah and Minneapolis, including Clark Crew BBQ and Real Famous BBQ.
Formed in 1994, BBQ Holdings owns and operates US-based restaurant chains such as Famous Daves.
In the nine months to 29th September 2019, the company posted revenue of USD 59.00 million, up 42.3 per cent from USD 41.46 million in the corresponding period of 2018.
There were 587 deals targeting full-service restaurant operators announced globally in 2019, according to Zephyr, the M&A database published by Bureau van Dijk.
In the most valuable of these, Leo Holdings agreed to pick up US-based CEC Entertainment for USD 1.40 billion.
© Zephus Ltd