A Greenwich investor who is a former Applebee’s restaurant franchisee and a partner agreed to buy 33 Applebee’s restaurants in the Midwest from San Diego chain DineEquity Inc., authorities say.
American Franchise Capital LLC didn’t disclose what it’s paying for the restaurants in Indiana and Missouri. The deal is due to close in the third quarter.
However, DineEquity says it will net about $26 million and reduce its sale-leaseback related financing obligations by about $22 million. In addition, DineEquity expects to pay an estimated $5 million related to the settlement of net working capital liabilities and deal costs.
Shedding the restaurants also will cut DineEquity’s annual overhead by about $1.3 million, officials said.
DineEquity has a separate deal pending to sell 39 more Applebee’s in Virginia.
American is run by Trevor Ganshaw and William J. Georgas, the former Applebee’s franchisee with The Georgas Group, which ran 47 of the restaurants.
DineEquity has sold off 342 Applebee’s restaurants to franchisees since acquiring the chain in November 2007.