TGI Fridays announced that it has purchased Green Mountain’s (GMH) $30 billion deal to buy the fast food chain’s restaurant operations, with a total value of about $2.2 billion.GMH is expected to take the majority of the chain’s business, according to the announcement.
The purchase will boost earnings for the companies.
The deal is expected as part of a $3.6 billion deal announced on Jan. 12, with TGI’s $7.9 billion buyout of General Motors, and General Motors’ $3 billion acquisition of Taco Bell, the deal that helped make the Taco Bell brand synonymous with fast food in the U.S. The acquisition was valued at about $3,000 per share, according a person familiar with the transaction.
Shares of GMH, which also owns TGI Thursday’s, fell 1.6% to $52.49 in premarket trading on Wednesday.TGI Friday is a chain of fast-food restaurants in the United States that has gained notoriety for its fast-casual, take-out service.
The chain has seen its sales decline as consumers increasingly look for cheaper options, including its takeout meals.GM’s acquisition of Green Mountain will help to expand the chain across the country, while TGI is also working to grow its restaurant business in the same manner as it expanded its take-and-go options in the past, the person familiar said.
The acquisition of the company’s restaurants comes just a few months after the chain acquired Taco Bell for $3bn.TFC’s market cap was about $5.2 trillion in 2015, according the latest data from data firm S&P Dow Jones Indices.
That’s about 20% higher than the $4.9 trillion market cap of TFC in 2016.