Bob Evans Restaurants announced it has sold all of its 500-plus restaurant locations to a private equity firm for $565 million.
Golden Gate Capital has bought the restaurant chain, and will retain the Bob Evans leadership team to guide the transition as it takes part of the company private, Bob Evans said. Net proceeds are expected to be between $475 million and $485 million, according to a company statement.
The transaction splits the company in half. Bob Evans Farms food division, which makes mashed potatoes, sausage and various side dishes, will become a standalone company.
“This is an important time for our brand, our company and our team, and this partnership will provide Bob Evans Restaurants with the resources, knowledge and flexibility needed to drive our growth, while remaining true to the values of our founder, Bob Evans,” said Saed Mohseni, CEO of Bob Evans Farms Inc.
Mohseni will become CEO of Bob Evans Restaurants following the transition. The sale of the restaurant comes months after the company announced it would close 27 locations back in April, including one in Riverside.
Mohseni said the company’s executive team, including Bob Evans Restaurants President John Fisher, will remain in place to oversee the transition and following the completion of the transaction. Bob Evans is headquartered in New Albany, just outside of Columbus.
Bob Evans Restaurants currently operates 523 restaurants in 18 states across the Midwest, Southeast and Mid-Atlantic.