IHOP buys Applebee's International
In a shake-up of the US restaurant scene, IHOP Corp announced on Monday that it was taking over Applebee's International, Inc for $ 2.1 billion.
By Agencies |
WASHINGTON: In a shake-up of the US restaurant scene, IHOP Corp announced on Monday that it was taking over Applebee's International, Inc for $ 2.1 billion.
IHOP, known for its tantalizing pancake menu, said its cash offer represented $ 25.50 per share for Applebee's, which serves up "sizzling" steaks and other grilled fare.
IHOP, which started out as the International House of Pancakes in the 1950s, and Applebee's, which supports the takeover, both have national footprints across the United States.
The pancake giant runs 1,319 restaurants in 49 US states, Canada, Mexico and the US Virgin Islands. Its restaurants are franchised and operated by Glendale, California-based IHOP Corp.
Applebee's, which is based in Overland Park, Kansas, franchises and runs 1,943 branded casual restaurants in 49 states and 16 countries.
IHOP, which serves 14 types of pancakes including chocolate-chip pancakes as well as omelettes, said it plans to franchise a substantial majority of Applebee's 508 company-operated restaurants from which it hopes to reap "significant" cost savings.
The pancake specialist said it then intends to pay down debt and return cash to shareholders through share repurchases.
IHOP chairman and chief executive Julia Stewart will lead the new company's management team.
"Applebee's meets all of our acquisition criteria and we expect the combination to generate significant additional value for our shareholders," Stewart said.
The companies hope to seal the deal, which requires shareholder and regulatory approvals, in the fourth quarter of the year.
IHOP, known for its tantalizing pancake menu, said its cash offer represented $ 25.50 per share for Applebee's, which serves up "sizzling" steaks and other grilled fare.
IHOP, which started out as the International House of Pancakes in the 1950s, and Applebee's, which supports the takeover, both have national footprints across the United States.
The pancake giant runs 1,319 restaurants in 49 US states, Canada, Mexico and the US Virgin Islands. Its restaurants are franchised and operated by Glendale, California-based IHOP Corp.
Applebee's, which is based in Overland Park, Kansas, franchises and runs 1,943 branded casual restaurants in 49 states and 16 countries.
IHOP, which serves 14 types of pancakes including chocolate-chip pancakes as well as omelettes, said it plans to franchise a substantial majority of Applebee's 508 company-operated restaurants from which it hopes to reap "significant" cost savings.
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The pancake specialist said it then intends to pay down debt and return cash to shareholders through share repurchases.
IHOP chairman and chief executive Julia Stewart will lead the new company's management team.
"Applebee's meets all of our acquisition criteria and we expect the combination to generate significant additional value for our shareholders," Stewart said.
The companies hope to seal the deal, which requires shareholder and regulatory approvals, in the fourth quarter of the year.
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