Bob Evans Farms, Inc. announced it entered into purchase and sale agreements with National Retail Properties and Mesirow Realty Sale-Leaseback, Inc. The terms of the sale-leaseback agreements included the sale of 119 Bob Evans Restaurant properties to National Retail Properties for $163.4 million, and the sale of 26 Bob Evans Restaurant properties to Mesirow for a purchase price of $36.6 million.
As part of the transactions, Bob Evans Restaurants agreed to enter into absolute net master leases with National Retail Properties and with Mesirow in which Bob Evans Restaurants will lease the locations for an initial term of 20 years, with five renewal options of five years each.
Chief administrative and chief financial officer Mark Hood says, “The sale-leaseback transactions are expected to provide the company with net proceeds of approximately $165 to $170 million, which we expect to use to pay down debt under the company’s credit agreement, repurchase Company shares, and for other corporate purposes." Hood added that the company anticipates the transactions will close before the end of its fiscal year on April 29.