Fiesta Restaurant Group Inc FRGI, the owner of the Pollo Tropical restaurant chain, is reportedly expected to reach a deal to be bought by an investment firm for $225 million.
The New York-based investment firm, Garnett Station Partners’ business unit, Authentic Restaurant Brands, is planning to add Fiesta Restaurant to its portfolio of casual dining brands, reported the WSJ.
Authentic also owns sports-bar chain P.J. Whelihan’s and Mambo Seafood.
The deal is expected to be worth $8.50 per share, representing an 8% premium to Fiest’a closing share price Friday of $7.86.
Fiesta posted an FY22 revenue increase of 8.4% to $387.4 million. It incurred a $(14.6) million loss, primarily due to a rise in commodity and labor expenses.
The company owned and operated 137 Pollo Tropical restaurants, with 30 that are franchised, across the U.S., Puerto Rico, Panama, Guyana and the Bahamas as of Apr 2, 2023.
Price Action: FRGI shares closed higher by 0.64% at $7.86 on Friday.
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