GLENDALE Calif. IHOP Corp. said it has agreed to sell 41 company-operated Applebee’s Neighborhood Grill & Bar restaurants to the brand’s largest franchisee, Apple American Group of San Francisco. Terms were not disclosed.
The units included in the transaction are located in Southern California and Nevada. Apple American Group currently operates 145 Applebee’s restaurants in eight states and had 2007 revenues of $380 million. IHOP did not say how many companies were outbid by Apple American.
IHOP said it expects the sales to be completed on staggered dates in a few months. The transactions are subject to such conditions as the transfer of liquor licenses.
As previously announced, IHOP expects to sell about 100 company-owned Applebee’s restaurants for up to $100 million in after-tax cash proceeds in fiscal 2008. The company plans to use the proceeds to repay part of its consolidated funded debt.