DALLAS, July 10, 2019 /PRNewswire/ -- Today, Brinker
International, Inc. (NYSE: EAT), a leader in the casual dining
industry, announced it has executed a letter of intent to acquire
116 Chili's® Grill & Bar restaurants from its
14-year franchisee, ERJ Dining.
The restaurants, primarily located in the Midwest, generate
approximately $300 million of
annualized revenue. The transaction is expected to close in the
first quarter of Brinker's fiscal year 2020, subject to completion
of due diligence and normal closing conditions.
The acquisition is expected to be EPS accretive and generate
incremental free cash flow in fiscal year 2020. Brinker intends to
fund the purchase price from its existing credit facility and
expects its adjusted leverage ratios to rise slightly above
previously announced targets in the short term.
"This acquisition is a compelling opportunity to further invest
in our brand, broaden our scale and create growth in earnings and
cash flow," said Joe Taylor, chief
financial officer and executive vice president of Brinker. "We
appreciate the relationship we developed with ERJ over the years
and view these well-established restaurants as a solid foundation
for further growth in these markets."
ABOUT BRINKER
Brinker International, Inc. is one of
the world's leading casual dining restaurant companies. Based in
Dallas, Texas, as of March 27, 2019, Brinker owned, operated, or
franchised 1,676 restaurants under the names Chili's®
Grill & Bar (1,623 restaurants) and Maggiano's Little
Italy® (53 restaurants).
FORWARD LOOKING STATEMENTS
The statements contained in
this release that are not historical facts are forward-looking
statements subject to risks and uncertainties which could cause
actual results to differ materially from expectations. For more
information, review the caption "Risk Factors" in our fiscal 2018
Annual Report on Form 10-K and our other filings with the
Securities and Exchange Commission relating to forward looking
statements.
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SOURCE Brinker International, Inc.