TGI Fridays has agreed to merge with its 89-unit United Kingdom-based franchisee, Hostmore plc, the companies announced Tuesday.
Dallas-based Fridays said Hostmore was its largest global franchisee. Terms of the all-share merger were reported to be about $220 million U.S.
The companies said the deal, which is expected to close in the third quarter 2024, would offer the casual-dining restaurant company operational and financial flexibility and increased scale and capital to deliver continued revenue. The combined company would be traded publicly on the London Stock Exchange as “TGIF.”
TGI Fridays said it had $1.4 billion in systemwide sales in 2023.
Upon completion of the transaction, the new combined entity would be named TGI Fridays plc. The brand’s U.S. and global operations would remain at the company's Dallas headquarters under the leadership of Weldon Spangler,, the current CEO, the brand said.
The combined entity would have 189 corporate-owned restaurants in the United States and the United Kingdom for nearly 600 restaurants across 44 countries.
In January, TGI Fridays said it would be closing 36 underperforming U.S. locations and sell eight restaurants to its former CEO.
"We have been laser focused on revitalizing the brand and driving growth through consumer-centric offerings, the optimization of our restaurant portfolio and the addition of senior team members,” Spangler said in a statement. “This transaction represents the next step in our journey as it increases our corporate-owned restaurant locations and provides capital to expand our presence globally.”
Stephen Welker, chairman of Hostmore, said: “This acquisition would give us the scale and flexibility to accelerate our existing strategy and enhance the financial outlook for Hostmore and scope for shareholder returns.”
TGI Fridays is controlled by TriArtisan Capital Advisors, a U.S.-based private-equity firm, with ownership stakes in several global consumer recognized dining concepts including P.F. Chang's China Bistro and Hooters of America, the sports bar, media, and entertainment company.
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