NPC International, Inc. announced that its wholly-owned subsidiary, NPC Quality Burgers, Inc., had entered into an Asset Purchase Agreement (APA) with Value Foods Company, LLC to acquire 13 franchised Wendy’s restaurants for $11.0 million, plus amounts for working capital. This acquisition will be funded entirely with available cash reserves.
The units being sold include 6 fee-owned locations, which will be leased from an affiliate of Value Foods. The restaurants will be owned and operated by NPC Quality Burgers, Inc.
The units to be acquired pursuant to the APA are located in the Kansas City metropolitan area. According to information provided to NPC, the units to be acquired generated $15.7 million in net product sales during the 52 weeks ended December 2012.
NPC expects the closing to occur by August 2013. Consummation of the transaction is subject to approval by The Wendy’s Company and satisfaction of customary closing conditions.
Jim Schwartz, Chairman and CEO of NPC International, Inc. said, “We are very excited about this acquisition, in part, because it fits perfectly with our pending acquisition of Wendy’s restaurants in the Kansas City metropolitan area announced last week. These stores have been well operated by franchisee Dave Merola and his team at Value Foods and we look forward to furthering this legacy of great customer service.
“We remain keenly interested in growing our presence in the Wendy’s system. Going forward we will remain opportunistic in the acquisition of markets that meet our investment objectives for this great brand.”