LOUISVILLE – Yum! Brands Inc. and The Habit Restaurants Inc. announced Monday they have agreed for Yum! Brands to purchase The Habit Burger Grill for $14 a share or approximately $375 million.
The board of directors of The Habit Burger Grill, unanimously voted to approve the deal.
Adding the grill to its list of restaurants gives Yum! Brands a fast-casual concept burger restaurant, allowing them to compete with businesses such as McDonalds and ShakeShack.
Louisville based Yum! Brands is the world’s largest restaurant company in terms of units and the parent of the KFC, Pizza Hut and Taco Bell global brands.
Founded in California in 1969, The Habit Burger Grill offers a flavor-forward variety of made-to-order items uniquely chargrilled over an open flame. Favorites include charburgers, hand-filleted and marinated chargrilled chicken sandwiches, sushi-grade chargrilled ahi tuna sandwiches, fresh salads, craveable sides and handmade frozen treats. The Habit Burger Grill operates nearly 300 company-owned and franchised restaurants across the U.S. and in China.
“We’ve emerged from our three-year transformation stronger and in a better position to accelerate the growth of our existing brands and leverage our scale to unlock value from strategic acquisitions,” said David Gibbs, Yum! Brands CEO.
“The transaction is a win-win because it allows us to offer an exciting new investment to our franchisees and to expand an award-winning, trend-forward brand through the power of Yum!’s unmatched scale and strengths in franchising, purchasing and brand-building.”
“Over the past few years, we’ve focused on becoming a total access brand by growing our delivery business, expanding our online ordering and mobile channels and enhancing the in-store experience by introducing drive-thrus, kiosks and technology-centric solutions for operations,” said Russell Bendel, president and CEO of The Habit Burger Grill. “We’re proud these and other actions have made The Habit Burger Grill an attractive candidate for a transaction of this kind.
On behalf of The Habit Burger Grill Board of Directors, this transaction represents an exciting new chapter to strengthen and significantly grow The Habit Burger Grill by leveraging Yum! Brands’ global scale, resources and franchising capabilities.”