Red Robin Gourmet Burgers announced that it has closed on the acquisition of 11 of the 13 franchised Red Robin restaurants in Washington state. The franchised restaurants were owned by various partnerships affiliated with Great Western Dining, the former manager of the restaurants.
The net proceeds paid at the initial closing were approximately $33.5 million, which were paid in cash drawn under the company's existing credit facility, plus the assumption of approximately $1.2 million of negative net working capital.
Red Robin also assumed management of the remaining two restaurant locations owned by the Washington franchisees under a management services agreement. The company expects to close on the remaining two restaurants, assuming acceptable lease terms with the landlords of each of those properties.