Dine Brands Global Inc (NYSE: DIN) has agreed to acquire Fuzzy's Taco Shop from Experiential Brands LLC, a wholly owned subsidiary of NRD Holding Company, for $80 million in cash.
Net of tax benefits, the purchase price is approximately $70 million. The transaction is expected to be immediately accretive to earnings.
Founded in 2003, Fuzzy's is a fast-casual restaurant concept serving Mexican favorites with a Baja twist. It has 138 restaurants in 18 states.
The brand is expected to generate approximately $230 million in systemwide sales in 2022.
Fuzzy's Chief Executive Officer Paul Damico will continue to drive the brand's future under the Dine Brands umbrella.
"It is an attractive asset with a tremendous growth trajectory and will be a complementary addition to our highly franchised portfolio," said CEO John Peyton
Dine Brands held $424.2 million in cash and equivalents as of September 30, 2022.
Price Action: DIN shares closed lower by 1.80% at $72.95 on Friday.
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