On May 27, 2020, the TGI Fridays logo appeared on a restaurant in London, England.
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TGI Fridays and the chain’s UK franchisee Hostmore, declare The merger is scheduled for Tuesday.
The all-stock deal is worth £177 million ($220 million). If closed, TGI Fridays, known for its potato skins, chicken wings and endless appetizers, would trade publicly on the London Stock Exchange under the ticker “TGIF.”
The company’s U.S. and global brand business headquarters will remain in Dallas, Texas. Chief Executive Weldon Spangler, who has led the company since October, will retain his current position.
“As we were thinking about our future and working with Hostmore on their future, this was one of those ideas that was brought up and everyone looked at each other and said, ‘This might work,'” Spangler told CNBC.
The new company will have 189 restaurants in the United States and the United Kingdom, the companies said. Franchisees will operate the remaining approximately 400 locations in the chain’s global footprint of 44 countries.
If regulatory approval is obtained, the merger is expected to close in the third quarter.
TriArtisan Capital Advisors acquired TGI Fridays from longtime owner Carlson Restaurants in 2014 in a deal reportedly worth more than $800 million. TriArtisan also owns stakes in PF Chang’s and Hooters.
In 2019, TGI Fridays announced plans to go public through a merger with a special purpose acquisition company, but the deal fell through as the Covid-19 pandemic disrupted financial markets and the restaurant industry.
TGI Fridays’ revenue grew 3.6% to $75.2 million in 2022, according to U.S. franchise disclosure documents. But with malls declining and casual dining losing customers, the bar and grill chain has struggled to turn a profit.
Spangler told CNBC that TGI Fridays is now returning to its roots and focusing more on its bar offerings. Across the restaurant industry, alcoholic beverages are generally more profitable than food. Under Spangler’s leadership, the chain has also brought in new blood, such as hiring Del Frisco Restaurant Group veteran Ray Risley as its U.S. president.
Earlier this year, TGI Friday closure 36 Underperforming Restaurants in America
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