TGI Fridays has agreed to an all-share acquisition by Hostmore, its UK-based hospitality business counterpart.
The £177 million ($220 million) transaction is set to be completed in the third quarter of 2024.
Stephen Welker, Chairman of Hostmore, expressed, “Through this acquisition, we aim to amplify our current strategy, bolstering Hostmore’s financial prospects and enriching shareholder returns. Additionally, it fortifies our capacity to deliver outstanding guest experiences, leveraging our unique and reputable brand as the ultimate destination for celebrations.”
“We eagerly anticipate offering both our current and prospective shareholders the chance to partake in the substantial value creation potential of the merged entity moving forward.”
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The merged entity will adopt the name TGI Fridays PLC and will trade on the London Stock Exchange under the ticker symbol “TGIF”.
The acquisition aligns with TGI Fridays’ strategy for transformation, aimed at positioning the brand for sustained, long-term global expansion.
TGI Fridays CEO Weldon Spangler remarked, “Our primary focus has been on rejuvenating the brand and fostering growth through consumer-centered initiatives, optimizing our restaurant portfolio, and recruiting key senior team members.”
“This transaction marks the next phase of our journey, expanding our corporate-owned restaurant footprint and furnishing capital for global expansion.”
“Hostmore is the ideal partner to help us realise our vision because they know how important it is to give guests ‘That Friday Feeling’ in the UK, which is the brand’s largest international market with 89 locations.”
TGI Fridays’ headquarters for its US and global operations will stay in Dallas, Texas, with Weldon Spangler remaining as CEO.
The newly formed entity will possess a portfolio of 189 corporate-owned restaurants in both the US and the UK, contributing to an aggregate of nearly 600 restaurants spread across 44 countries.
Presently, TGI Fridays is under the ownership of TriArtisan Capital Advisors, a private equity firm with investments in restaurant brands like PF Chang’s, C3, and Hooters of America.
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