TGI Fridays has agreed to an all-share acquisition by its UK-based hospitality business Hostmore.

The £177m ($220m) transaction will be finalised in the third quarter of 2024.

Hostmore chairman Stephen Welker 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, while also strengthening our ability to provide an exceptional guest experience by harnessing our distinctive, trusted brand as the home of celebrations.

“We look forward to presenting our existing and new shareholders the opportunity to participate in the significant value creation potential of the combined group going forward.”

The combined entity will be named TGI Fridays PLC and will be listed on the London Stock Exchange under the ticker “TGIF”.

The acquisition is in line with TGI Fridays’ transformation strategy to position the brand for sustained long-term global growth.

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TGI Fridays CEO Weldon Spangler said: “We have been laser-focused on revitalising the brand and driving growth through consumer-centric offerings, the optimisation of our restaurant portfolio and the addition of senior team members.

“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.

“Hostmore is the perfect partner to help us achieve our vision, as they understand the importance of bringing ‘That Friday Feeling’ to guests in the brand’s largest international market, operating 89 locations in the UK.”

The headquarters for TGI Fridays’ US and global operations will remain in Dallas, Texas, with Weldon Spangler continuing as CEO.

The new entity will have a portfolio of 189 corporate-owned restaurants in the US and the UK, contributing to a total of nearly 600 restaurants across 44 countries.

TGI Fridays is currently under the control of TriArtisan Capital Advisors, a private equity firm with stakes in restaurant brands such as PF Chang’s, C3 and Hooters of America.