Ignite Restaurant Group announced it has entered into a definitive agreement to sell its Romano’s Macaroni Grill subsidiary to Redrock Partners, LLC.
Under terms of the agreement, Ignite Restaurant Group will receive approximately $8 million in cash, prior to any adjustments for transaction related costs. The transaction is expected to close within 30 days, subject to customary closing conditions.
Ignite purchased the brand from Golden Gate Capital in 2013. Golden Gate Capital held a majority stake in the business from 2008 to 2013, purchasing the majority from Brinker International.
“We continue to believe in the underlying strengths of the Macaroni Grill business," says Ray Blanchette, CEO of Ignite Restaurant Group. "Unfortunately, the brand was unable to deliver, in a timely manner, on the milestones we established. As a result, we decided that it was in the best interest of Ignite and our shareholders to sell the brand. The divestiture of Mac Grill will enable us to focus our resources on building momentum at Joe’s Crab Shack while growing Brick House Tavern & Tap. We are very appreciative of the efforts of the entire Macaroni Grill team and believe that Redrock Partners will provide the leadership to ultimately achieve success in this brand.”