​Hostmore Seals Deal to Acquire TGI Fridays

​Hostmore Seals Deal to Acquire TGI Fridays

Posted by Emma on 22nd Apr 2024

TGI Fridays, an American casual dining staple, has faced years of hardship amid shifting consumer tastes. However, a recent acquisition deal by its largest franchisee, U.K.-based Hostmore, offers a glimmer of hope for the struggling chain.

TGI Friday's at Hartsfield-Jackson Atlanta International Airport Harrison Keely, CC BY 4.0, via Wikimedia Commons

Hostmore has agreed to acquire the U.S. operations of TGI Fridays, with the deal expected to close in the third quarter of this year. Despite recent closures of underperforming restaurants and a change in leadership, TGI Fridays reported sales of $1.4 billion in 2023.

The acquisition is seen as a strategic move to ensure the long-term stability and growth of the brand. The combined entity, which will trade on the London Stock Exchange, will have its headquarters in Dallas, with Weldon Spangler, the current CEO, retaining his position.

Spangler expressed optimism about the acquisition, stating, "This transaction represents the next step in our journey... Hostmore is the perfect partner to help us achieve our vision."

Hostmore, already operating 89 TGI Fridays locations in the U.K., sees the acquisition as an opportunity to accelerate its growth strategy and enhance shareholder returns. The proposed deal values TGI Fridays at £177 million, resulting in existing Hostmore shareholders holding a 36% stake in the enlarged business.

TGI Fridays, Tallahassee Michael Rivera, CC BY-SA 3.0, via Wikimedia Commons

Stephen Welker, chairman of Hostmore, emphasised the strategic fit between the two businesses and the potential for value creation. Rohit Manocha, chairman of TGI Fridays, highlighted the acquisition's complementary nature and its alignment with the chain's long-term growth strategy.

As negotiations for the acquisition continue, both parties remain optimistic about its potential synergies and opportunities.

We'd love to hear your thoughts on this acquisition. Leave a comment below!