FORT WORTH, Texas — This story originally appeared in the Dallas Business Journal, a WFAA news partner.
The parent company of Applebee’s Neighborhood Grill + Bar and IHOP restaurants has agreed to acquire Fort Worth-founded Fuzzy's Taco Shop.
Dine Brands Global Inc. (NYSE: DIN) will purchase the fast-casual Baja-inspired restaurant for $80 million in cash from Experiential Brands, a platform of Atlanta's NRD Capital Management.
“We had many options when evaluating the ideal partner to help accelerate the growth of Fuzzy’s Taco Shop,” said Fuzzy's founder Mel Knight in a prepared statement. “We selected NRD because of their operator-centric mentality, flexible capital and unparalleled franchising experience."
Fuzzy's, which is expected to generate about $230 million in sales this year, now spans 138 restaurants in 18 states, with the additional boon of long-term development agreements in place to nearly double its current restaurant base over time. About 98% of the Fuzzy's system is franchised.
The Fuzzy's team is looking to the transaction to help to continue to build on its successes and accelerate its growth, Paul Damico, CEO of Fuzzy's, said in a statement.
“I’m incredibly proud of the work the Fuzzy’s team and franchisees have accomplished over the past few years, which has enabled us to enter this new chapter of growth together with Dine Brands,” Damico said.
Centerview Partners acted as exclusive financial advisor to Dine Brands, while Sidley Austin acted as legal advisor. Arlington Capital Advisors served as exclusive financial advisor to Fuzzy’s Taco Shop, and Cheng Cohen served as legal advisor to Fuzzy’s Taco Shop and NRD Holding Company on the transaction.