US steakhouse chain Del Frisco’s Restaurant Group has agreed to sell Sullivan’s Steakhouse to Romano’s Macaroni Grill for gross proceeds of around $32m.
The yet to be finalised net proceeds will be used to reduce Del Frisco’s outstanding debt.
The sale of Sullivan’s Steakhouse is part of a strategic alternatives process for the brand that was first announced in March this year.
At present, Sullivan’s Steakhouse includes 14 locations across 12 states in the US.
Under the agreement, Scott Smith will continue with Del Frisco’s, having acted as president of Sullivan’s Steakhouse since January 2017.
He will take on similar responsibilities for Del Frisco’s Double Eagle Steakhouse. Ray Risley has stepped down, having in that same position.
Commenting on the deal, Del Frisco’s Restaurant Group CEO Norman Abdallah said: “The sale of Sullivan’s Steakhouse enhances our financial condition while enabling us to sharpen our focus on opportunities with the highest potential for strong returns.
“These include executing our Emerging Brands integration and expanding our core concepts of Del Frisco’s Double Eagle Steakhouse, Barcelona Wine Bar and bartaco. We wish our colleagues at Sullivan’s Steakhouse all the best under their new ownership.”
Romano’s Macaroni Grill president and CEO Nishant Machado and senior managing director Mackinac Partners added: “The acquisition of Sullivan’s Steakhouse is precisely aligned with our strategic plan and vision.
“The brand complements our existing restaurant portfolio of 85 company-owned Macaroni Grill restaurants in 22 states, plus 23 franchise locations in the US and seven other countries. Under our stewardship, we look forward to taking Sullivan’s Steakhouse to new heights.”
The transaction is slated to conclude on or before the end of this month.
Piper Jaffray and Kirkland & Ellis served as exclusive financial advisor and legal advisor respectively to Del Frisco’s and its board of directors.