Glendale, Calif. — Dine Brands Global, Inc., the parent company of Applebee’s Neighborhood Grill + Bar® and IHOP® restaurants, has agreed to acquire Fuzzy’s Taco Shop® from Experiential Brands LLC, a wholly owned subsidiary of NRD Holding Company, for $80 million in cash. Fuzzy’s is a fast-casual restaurant concept serving Mexican favorites with a Baja twist. Net of tax benefits, the purchase price is approximately $70 million.
Founded in 2003 in Fort Worth, Texas, Fuzzy’s is a category innovator, offering a new twist on Mexican favorites at a value price point. Fuzzy’s is led by a strong management team, including CEO Paul Damico, a 35-year industry veteran at FOCUS Brands, Moe’s Southwest Grill and Global Franchise Group. Damico will continue to drive the future of Fuzzy’s under the Dine Brands umbrella.
“By adding Fuzzy’s to the Dine Brands family, we are investing in a high growth concept as part of our longer-term growth agenda, which is aligned with our strategy to build shareholder value,” says John Peyton, chief executive officer of Dine Brands.
Fuzzy’s, with 138 restaurants in 18 states, has long term development agreements currently in place to nearly double its current restaurant base over time. 98% of Fuzzy’s current system is franchised. The brand is expected to generate approximately $230 million in systemwide sales in 2022.
For more information, visit www.investors.dinebrands.com.
Centerview Partners LLC acted as exclusive financial advisor and Sidley Austin LLP acted as legal advisor to Dine Brands on the transaction. Arlington Capital Advisors served as exclusive financial advisor to Fuzzy’s Taco Shop and Cheng Cohen LLC served as legal advisor to Fuzzy’s Taco Shop and NRD Holding Company on the transaction.
SOURCE: Dine Brands Global, Inc.