The owner of Dick’s Wings is finally getting Tilted Kilt, for about the price of a Pub Double.
Arc Group on Tuesday said it has a deal to acquire 34-unit Tilted Kilt for $10.
Arc will also assume $1.8 million in debt and $1.5 million in “future payment obligations.” And the company will issue 1.4 million shares of stock.
The deal has been in the works for several months. In June, Jacksonville, Fla.-based Arc reached a complicated deal with Tilted Kilt and SDA Holding, a company owned by one of Arc’s board members, Fred Alexander.
SDA acquired Tilted Kilt, receiving a loan from Arc CFO and Chairman Seenu Kasturi. Arc said at the time that it was trying to arrange financing to make the acquisition. Under the new agreement, Arc will buy Tilted Kilt for $10 plus the assumption of debt.
Arc is one of several companies trying to acquire underperforming brands at low prices to pair them with other concepts in a bid to generate scale during a competitive period in the restaurant industry.
“The Tilted Kilt acquisition is in line with our strategy of targeting undervalued/underperforming restaurant chains with immediate cash flow potential, where we have the ability to leverage our franchising, marketing, operational, logistics and financial expertise across brands,” Kasturi said in a statement.
This was the second acquisition by Arc Group this year, following its purchase in August of the four-unit Fat Patty’s franchise for $12.3 million.
The addition of Fat Patty’s and Tilted Kilt to the Arc Group portfolio gives the company an additional $25 million in revenue. Dick’s Wings operates 22 locations and generates $22 million in system sales.