Fast-food restaurant company Yum! Brands has reached a definitive agreement to buy all of the issued and outstanding common shares of The Habit Burger Grill for around $375m.
As part of the agreement, Yum! Brands will acquire Habit Burger for $14 per share in cash.
Dependent on The Habit Burger Grill’s stockholders approval, regulatory approval, and other customary closing conditions, the transaction is scheduled to be completed by the end of the second quarter of this year.
Yum! Brands’ financial and legal advisors are BofA Securities and Mayer Brown respectively.
Financial and legal advisors of The Habit Burger Grill are Piper Sandler Companies and Ropes & Gray respectively.
The acquisition will significantly increase the international portfolio of Yum! Brands, which is the parent organisation of KFC, Pizza Hut and Taco Bell.
Yum! Brands chief executive officer David Gibbs said: “We’ve emerged from our three-year transformation stronger and in a better position to accelerate the growth of our existing brands and leverage our scale to unlock value from strategic acquisitions.”
Established in 1969, Habit Burger offers charburgers, hand-filleted and marinated chargrilled chicken sandwiches, sushi-grade chargrilled ahi tuna sandwiches, fresh salads, sides and handmade frozen treats.
The fast-casual concept opened its first restaurant in Santa Barbara, California, US, and operates approximately 300 company-owned and franchised restaurants across the US and China.
The Habit Burger Grill president and chief executive officer Russell Bendel said: “On behalf of The Habit Burger Grill board of directors, this transaction represents an exciting new chapter to strengthen and significantly grow The Habit Burger Grill by leveraging Yum! Brands’ global scale, resources, and franchising capabilities.
“We’re confident the agreement delivers immediate value to The Habit Burger Grill shareholders and will greatly benefit our beloved brand, team members, franchisees and loyal guests for many years to come.”
Headquartered in Louisville, Kentucky, US, Yum! Brands has more than 49,000 restaurants in over 145 countries and territories.