Hostmore PLC announced Tuesday it would acquire TGI Fridays in a £177 million deal that combines the British restaurant group with the American-themed casual dining chain. The acquisition, advised by Herbert Smith Freehills LLP for Hostmore and Ropes & Gray LLP for TGI Fridays, unites the two companies in a move that is expected to reshape the dining scene.
Hostmore To Buy TGI Fridays For £177M : A Strategic Merger
The deal sees Hostmore, which already owns the U.K. franchise of TGI Fridays and operates 89 restaurants across the country, take on the larger company through a reverse takeover. The merged entity will be named TGI Fridays PLC and will trade on the London Stock Exchange, allowing Hostmore to enhance its existing strategy and capitalize on its distinctive brand.
A Boost for Hostmore and TGI Fridays
The all-share transaction will result in Hostmore holding 36% of the enlarged company, with TGI Fridays shareholders owning the remaining 64%. This combination is anticipated to provide a robust platform for growth, offering scale and flexibility to accelerate Hostmore’s plans and boost its financial prospects.
