Bob Evans (BOBE) has sold its Bob Evans Restaurants to Golden Gate Capital for $565 Million. In addition it has acquired Pineland Farms Potato Company.
Bob Evans intends to focus entirely on its food business and intends to expand on its popular side dish offerings.
President and Chief Executive Officer Mike Townsley said, “We are pleased the sale of Bob Evans Restaurants and the acquisition of Pineland Farms Potato Company have been completed as anticipated. I, along with the rest of the Bob Evans team, look forward to executing on the expanded set of growth opportunities ahead. We expect to leverage our acquisition of Pineland Farms Potato Company and our superior on-shelf performance to generate continued side-dish sales growth, particularly in expansion markets and new retail channels such as club and convenience stores. We also expect to grow in the food service channel as we partner with restaurant chains to help them better manage their costs while providing high quality products for their guests. This strategy is expected to enable a virtuous cycle of cash flow growth to: reward shareholders; attract and retain top talent; and fund capital and marketing investments which we expect to drive both retail and food service sales growth.”
In addition to announcing the sale of its Restaurants and the acquisition of the Pineland Farms Potato Company, Bob Evans also announced that it was paying a “Special Dividend” of $7.50 per share to shareholders of record May 30, 2017 and was payable on June 16, 2017.