Replies to post #10664 on Keeping It Simple

[eastunder]

Bob Evans Restaurants is now a private company.

The 523-unit chain Monday said its $565 million sale to Golden Gate Capital is completed. The move leaves the food products business as the only operation under the publicly traded Bob Evans Farms Inc. (NASDAQ:BOBE).

The deal was announced in January and is expected to generate net proceeds of between $475 million and $485 million.

Previous Bob Evans Farms CEO Saed Mohseni remains in that role with the restaurant business while Mike Townsley, president of Bob Evans Farms Foods, is now CEO of Bob Evans Farms.

Despite the separation of the businesses, both will continue to share their New Albany headquarters and the foods operation will continue as a supplier to the restaurants.

“We are confident that Bob Evans Restaurants’ heartfelt hospitality and farm-fresh quality are key differentiators in today’s family dining space,” Josh Cohen, managing director at Golden Gate, said in a press release.

Bob Evans Farms also closed its $115 million purchase of Maine-based Pineland Farms Potato Co.

“We expect to leverage our acquisition of Pineland Farms Potato Company and our superior on-shelf performance to generate continued side-dish sales growth, particularly in expansion markets and new retail channels such as club and convenience stores,” Townsley said in the release.