Chanticleer Holdings Executes Letter of Intent to Acquire Five Locations with Complementary Concept in Better Burger Space
15 April 2019 - 10:00PM
Chanticleer Holdings, Inc. (NASDAQ:
BURG)
(“Chanticleer” or the “Company”), owner, operator, and franchisor
of multiple nationally recognized restaurant brands, today
announced that it has entered into a non-binding letter of intent
for the acquisition of a highly complementary better burger brand
with industry leading metrics. The target company has
reported revenues of $10 million per year and historically
demonstrated store level EBITDA of approximately 20%.
Fred Glick, Chanticleer Holdings President
stated, “We are pleased to have entered into a letter of intent for
the purchase of a highly complementary better burger brand. We
believe this acquisition provides an opportunistic valuation and
will be accretive to our existing portfolio and more importantly it
geographically complements our existing portfolio in the Southeast
United States with five new locations across multiple new local
markets and other future sites already targeted.”
Glick continued, “We believe this acquisition
will provide us with significant scale and help to define us as a
more formidable player in the space. The platform that we’ve
created over the last four months, facilitated with multiple new
members of management, provides significant leverage by utilizing
their talent and expertise to seamlessly integrate an acquisition
like this without incremental cost.”
Acquisition Highlights:
- Expected to add significant scope to current operations of
Chanticleer
- Post-acquisition, Chanticleer expects to be able to leverage
target company’s strong EBITDA margins
- Allows Chanticleer to tap further into key markets of target
company’s main operations including North Carolina, South Carolina
and Virginia
- Immediately adds five restaurants and generates significant
geographic synergies related to customers, menu options and overall
dining experience
- Provides the ability for Chanticleer to leverage target
company’s human capital within core burger concepts
Chanticleer Holdings CEO Mike Pruitt stated,
“While we continue to grow organically including having previously
doubled our Little Big Burger store count to 20, up from just 8
when we acquired the brand, we’ve always kept our eyes open for
additional accretive acquisition opportunities that would bolster
our better burger portfolio of brands. With the recent additions of
Fred, Patrick and Troy, we now have the management team and
platform which we believe allows us to make a strategic acquisition
like this one, allowing for expected seamless integration,
increased scale, revenues, and relevance.”
Pruitt continued, “As noted on our year end conference call, we
expect current and ongoing internal efforts have the potential to
yield measurable results to our current portfolio’s performance.
With that, we believe this transaction not only has the potential
to complement our plan, but also help to accelerate it. Our goal
remains the creation of shareholder value. It’s for that reason
that our management team, board of directors and bankers all felt
it to be in the best interest of our shareholders to aggressively
pursue the transaction, in addition to initiating the process of
corporate rebranding, including a name change to better align our
brand name with our new core ideology.
“Lastly, we were equally pleased that the owners
and management of the acquisition target also recognize the unique
proposition afforded by our platform. After spending time with both
Fred and I, we are glad they see the value in joining us as
shareholders through a transaction that includes equity, therefore
helping to align their goals with ours.”Closing of the transaction
is subject to usual and customary conditions for an acquisition of
this nature.
About Chanticleer Holdings, Inc.
Headquartered in Charlotte, NC, Chanticleer Holdings owns,
operates, and franchises fast, casual, and full-service restaurant
brands, including American Burger Company, BGR – Burgers Grilled
Right, Little Big Burger, Just Fresh, and Hooters. For more
information, please visit:
www.chanticleerholdings.com.
Forward-Looking Statements:
Any statements that are not historical facts contained in this
release are “forward-looking statements” as that term is defined
under the Private Securities Litigation Reform Act of 1995 (PSLRA),
which statements may be identified by words such as “expects,”
“plans,” “projects,” “will,” “may,” “anticipates,” “believes,”
“should,” “intends,” “estimates,” and other words of similar
meaning. Such forward-looking statements are based on current
expectations, involve known and unknown risks, a reliance on third
parties for information, transactions or orders that may be
cancelled, and other factors that may cause our actual results,
performance or achievements, or developments in our industry, to
differ materially from the anticipated results, performance or
achievements expressed or implied by such forward-looking
statements. Factors that could cause actual results to differ
materially from anticipated results include risks and uncertainties
related to the fluctuation of global economic conditions, the
performance of management and our employees, our ability to obtain
financing or required licenses, competition, general economic
conditions and other factors that are detailed in our periodic
reports and on documents we file from time to time with the
Securities and Exchange Commission. The forward-looking statements
contained in this press release speak only as of the date the
statements were made, and the companies do not undertake any
obligation to update forward-looking statements. We intend that all
forward-looking statements be subject to the safe-harbor provisions
of the PSLRA.
Contact Information:
Investor Relations Jason Assad 678-570-6791
Ja@chanticleerholdings.com
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