TGI Fridays to be acquired by U.K. company
TGI Fridays is combining its business with its its largest global franchisee in a deal that will put it on the London Stock Exchange.
The Dallas-based company said it has reached a non-binding agreement to be acquired by U.K.-based hospitality business Hostmore plc in all-share deal valued at 177 million pounds ($220 million). The combined entity would be named TGI Fridays plc and listed on the London Stock Exchange as “TGIF."
The new entity will have 189 corporate-owned restaurants in the United States and the UK, with a total of nearly 600 restaurants across 44 countries. Both the U.S. and global operations of the brand will remain headquartered in Dallas under the leadership of Weldon Spangler, who was named CEO of TGI Fridays in October 2023. Spangler previously spent seven years at Dunkin’ Brands and 12 years at Starbucks. He also served as CEO of Papa Murphy’s International, from 2017 to 2019. Most recently, he was senior VP of market operations at Subway.
The casual-dining company said the deal, which is expected to close in the third quarter of 2024, is part of its transformation strategy and would create “a combined global hospitality company that positions TGI Fridays for continued long-term global growth.”
TGI Fridays, which reported $1.4 billion in total systemwide sales in 2023, is controlled by TriArtisan Capital Advisors, a U.S.-based private equity firm which also has ownership stakes in P.F. Chang’s and Hooters of America. In January, the company said it would close 36 underperforming locations in select markets across the United States as part of its “ongoing growth strategy.”
"We have been laser focused on revitalizing the brand and driving growth through consumer-centric offerings, the optimization of our restaurant portfolio and the addition of senior team members,” said Spangler. “This transaction represents the next step in our journey as it increases our corporate-owned restaurant locations and provides capital to expand our presence globally. Hostmore is the perfect partner to help us achieve our vision.”
The U.K. is TGI Fridays largest international market, operating 89 locations throughout the company.
"This acquisition would give us the scale and flexibility to accelerate our existing strategy and enhance the financial outlook for Hostmore and scope for shareholder returns, while also strengthening our ability to provide an exceptional guest experience by harnessing our distinctive, trusted brand as the home of celebrations," said Stephen Welker, chairman of Hostmore. "We look forward to presenting our existing and new shareholders the opportunity to participate in the significant value creation potential of the combined group going forward."