American casual dining chain TGI Fridays has announced plans to merge with UK franchisee Hostmore, ahead of listing on the London Stock Exchange under the ticker TGIF.
The all-stock deal to take TGI Fridays public is valued at approximately $220 million. CNBC first reported.
The restaurant’s domestic and international operations will remain headquartered in Dallas, Texas, and CEO Weldon Spangler will continue in his top role.
“This transaction represents the next step in our journey as it provides capital to increase the number of our corporate-owned restaurant locations and expand our presence globally.” Spangler said in a press release. on Merger Tuesday.
It is not immediately clear how many additional TGI Fridays locations are planned to open.
There are already more than 600 TGI Fridays locations in 44 countries, including approximately 233 locations in the United States, as well as locations throughout South America, the United Kingdom, and Asia.
Once the merger is complete, the new joint venture will be responsible for just 189 restaurants in the U.S. and U.K., according to CNBC. All other stores are owned by independent franchisees.
Subject to regulatory approval, the deal with Hostmore, a Sussex-based hospitality company best known for operating American-themed casual bars and restaurants, is expected to close in the third quarter.
The Post has reached out to TGI Fridays and Hostmore for comment.
TGI Fridays has been seeking to go public since 2019, and at the time announced plans to merge with special acquisition vehicle Allegro Merger, which would inject $30 million in cash and stock into the restaurant chain. .
TriArtisan Capital Advisors, which also owns stakes in PF Chan’s and Hooters, is part of the acquisition of TGI Fridays from longtime owner Carlson Restaurants in 2014 in a deal valued at more than $800 million. The company reportedly planned to exchange most of its ownership for Allegro stock. IPO’s.
However, CNBC first reported that the agreement fell apart as the coronavirus disease (COVID-19) outbreak hit financial markets and the restaurant industry hard.
Since then, TGI Fridays has closed 36 “underperforming” restaurants across the U.S., including five in New York, as part of its “continued growth strategy.”
The closures span 12 states, including seven in New Jersey, six in Massachusetts, five in New York, and four in Texas and Virginia.
There were also closures in California, Connecticut, Florida, Maryland, New Hampshire and Pennsylvania, as well as two locations in Colorado (the state’s only TGI Friday venue).
“As part of the closure, TGI Fridays is offering transfer opportunities for more than 1,000 people, representing more than 80% of all affected employees,” the company announced at the time of its sudden closure in January. did.
Also, when working at a company, revealed a surprising closure.also announced that eight previously corporate-owned restaurants in the Northeast will be sold to former CEO Ray Blanchett.
Blanchett served as chief of TGI Fridays for five years before stepping down in May 2023 as the restaurant chain, creator of the popular Loaded Potato Skins appetizer, “entered a new phase of its turnaround.”
