Chanticleer Holdings, focused on expanding the Hooters® restaurant brand on an international scale, has signed a non-binding Letter Of Intent to purchase all of the outstanding shares of American Roadside Burgers, Inc. (NYSE:ARB), a Charlotte, N.C.-based chain of five restaurants.
Established in 2006, ARB is a casual dining restaurant chain with two locations in Charlotte, N.C., one location in Columbia, S.C. and the newest location in Greenville, S.C. Tom Lewison, a current director of ARB, will join HOTR's board of directors to provide strategic direction for the companies.
"This intended acquisition of an exciting chain of restaurants is our first departure from our ongoing development of Hooter's restaurants in foreign countries," Mike Pruitt, CEO of HOTR, stated in the press release. "This acquisition will in no way change our focus on the development of Hooters restaurants internationally, but American Roadside presents a unique strategic opportunity in a high-growth space. We believe acquiring American Roadside at this stage of their development will allow Chanticleer to guide its growth and we plan to expand the chain as on-going improvements and future opportunities occur."
Lewison, a 35-year industry veteran and former chief operating officer of Bojangles, added, "Mike came to American Roadside Burgers with the idea to combine our two brands under our experienced leadership and grow the two separate operating companies into a great combination of domestic and foreign restaurant brands. Joining forces with Chanticleer at this time is the perfect opportunity for our brand to grow within a solid corporate restaurant environment. I am really looking forward to bringing my experience to Chanticleer Holdings as a board member and strategic advisor."
The intended preliminary agreement calls for HOTR to issue 740,000 company units to the owners of Roadside Burgers price at $5 per unit. The value of the share exchange will be dependent upon HOTR's stock price at date of closing. HOTR will assume minimal debt of ARB.
The transaction is expected to be completed September 30, 2013.
For more information, visit ChanticleerHoldings.com
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