- Fiesta Restaurant Group Inc FRGI has entered into a definitive stock purchase agreement to sell the Taco Cabana restaurant brand to YTC Enterprises LLC, an affiliate of Yadav Enterprises Inc.
- The agreement provides for the sale of all of the outstanding capital stock of Taco Cabana Inc, the parent company of the Taco Cabana business, for a cash purchase price of $85 million.
- The transaction is expected to close in the third quarter of 2021.
- Fiesta will use the sale proceeds to repay about $74.6 million of outstanding term loan borrowings.
- A portion of sale proceeds will be used for investments to accelerate Pollo Tropical’s (restaurant chain) growth.
- Fiesta’s cash and equivalents totaled $67.6 million as of June 27, 2021.
- Price action: FRGI shares closed higher by 11.24% at $14.94 on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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