NRD Partners I LP has agreed to acquire Frisch’s Restaurants for $34 per share or about $175 million. The transaction is expected to be completed before the end of September. Raymond James & Associates Inc is advising Frisch’s on the deal. Frisch’s operates Big Boy restaurants in Ohio, Kentucky and Indiana.
CINCINNATI, May 22, 2015 /PRNewswire/ — Frisch’s Restaurants, Inc. (NYSE MKT: FRS) and NRD Partners I, L.P., a private equity fund, announced today an agreement pursuant to which an affiliate of NRD Partners I, L.P. will acquire all of the outstanding shares of Frisch’s Restaurants, Inc. for $34.00 per share in cash, or approximately $175 million. The transaction is expected to close before the end of September.
The $34.00 per share cash consideration represents a premium of approximately 21% as compared to the closing price of the Company’s common stock on May 21, 2015. Frisch’s will retain the ability to maintain its quarterly dividend policy until the close of the transaction.
The Company’s Board of Directors has determined that the proposed transaction is in the best interest of the Company and its current stockholders and has approved the transaction which is subject to customary closing and receiving regulatory and shareholder approvals. Following completion of the transaction, Craig F. Maier, the Company’s Chief Executive Officer, and Karen F. Maier, the Company’s Vice President of Marketing, will retire but will remain as franchisees of Frisch’s.
“We are pleased to have reached an agreement that maximizes value for our shareholders and ensures the iconic Frisch’s restaurants can continue to provide a full-service family dining experience to our guests,” said Craig Maier, Frisch’s Chief Executive Officer. “This is the culmination of over two years of strategic planning and this is the right transaction for the Company. Frisch’s has been a family operated business since my grandfather opened our first drive-in in 1939. On behalf of my entire family, I’d like to thank our loyal customers for allowing us to serve them ever since.”
“Frisch’s restaurants are among the most classic and adored family restaurants in the country,” said Aziz Hashim, NRD Partners I, L.P.’s chief executive officer. “We are excited to have an opportunity to acquire and implement our franchise growth strategy with this beloved brand.”
Frisch’s is being advised by Raymond James & Associates, Inc., its financial advisor. James R. Cummins and other members of the firm of Cummins & Brown LLC, a Cincinnati-based law firm, are acting as legal counsel to the Company in connection with the transaction. A copy of the merger agreement will be filed with the U.S. Securities and Exchange Commission and can be accessed on line at www.sec.gov.
About Frisch’s Restaurants, Inc.
Frisch’s is a regional company that operates full service family-style restaurants under the name “Frisch’s Big Boy.” All Frisch’s Big Boy restaurants are currently located in various regions of Ohio, Kentucky and Indiana. The Company owns the trademark “Frisch’s” and has exclusive, irrevocable ownership of the rights to the “Big Boy” trademark, trade name and service marks in the states of Kentucky and Indiana, and in most of Ohio and Tennessee. All of the Frisch’s Big Boy restaurants also offer “drive-thru” service. The Company also licenses Big Boy restaurants to other operators, currently in certain parts of Ohio, Kentucky and Indiana.
About NRD Partners I, L.P.
NRD Partners I, L.P. (NRD) is a private equity fund founded by Aziz Hashim to fill a commonly perceived gap in franchise equity investing. NRD seeks to acquire brands that offer superior products and compelling unit economics and help them grow to their fullest potential through NRD’s expanding network of franchisee investors. For more information, please visit www.nrdcapital.com