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Financing

Logan's Roadhouse parent agrees to buy J. Alexander's for $220M

The cash tender offer represents a 14% premium over J. Alexander's stock price.
Photograph: Shutterstock

The parent of Logan’s Roadhouse has agreed to purchase the polished-casual brand J. Alexander’s and its sister concepts in an all-cash deal valued at $220 million, according to an announcement from the companies on Friday. 

Several of J. Alexander’s major shareholders, including several executive officers, have already agreed to tender their holdings to SPB Hospitality for $14 a share, according to the operators. The tender offer represents a 14% premium over J. Alexander’s stock price as of July 1. The committed sellers hold more than 20% of total shares outstanding.

The deal has been approved by J. Alexander’s board but not yet by its shareholders. It is expected to close in the fourth quarter.

The deal will add three more concepts to SPB’s portfolio of casual brands, which, in addition to Logan’s, includes Old Chicago Pizza & Taproom, Rock Bottom Restaurant & Brewery and Gordon Biersch Brewery Restaurant.

J. Alexander’s operates 47 restaurants in 16 states. In addition to its namesake brand, the company’s holdings include Redlands Grill and Stoney River Steakhouse and Grill.

The sale is the culmination of a strategic review that began in August 2019, continued into 2020 and was then suspended by the pandemic, only to be resumed this year.

“Our board evaluated a full range of strategic, financial and capital structure alternatives to best serve the interests of our shareholders,” Lonnie Stout, executive chairman of J. Alexander’s, said in a statement. “After a thorough evaluation and strategic process, the board is confident this transaction provides excellent value to our shareholders.”

The pending transaction is the latest in a flurry of acquisition deals this week. Since mid-June, Panera Bread agreed to sell Au Bon Pain; Fiesta Restaurant Group struck a deal to divest Taco Cabana; the parent of Famous Dave’s acquired Bakers Square and Village Inn; Luby’s sold its namesake and Fuddrucker’s brands; Lee’s Famous was acquired by a private-equity firm; and the parent of Fatburger added Round Table Pizzza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker to its fold.

Those transactions are in addition to JAB Holdings’ sale of Krispy Kreme Doughnuts.

 

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