Bob Evans (BOBE) to sell Bob Evans Restaurants, will acquire Pineland Farms Potato Company

• Bob Evans Farms, Inc. is leaving the restaurant business and transitioning fully into pre-packaged and frozen foods.
• Golden Gate Capital to acquire Bob Evans Restaurants for $565 million plus assumption of certain net working capital liabilities. Net proceeds of $475 to $485 million expected
• Golden Gate Capital owns California Pizza Kitchen and Red Lobster.
• The company announced two transformational transactions resulting from the board of directors' strategic review of the Company's alternatives for creating shareholder value. The sale of Bob Evans Restaurants and the acquisition of Pineland Farms Potato Company marks the beginning of a new era at Bob Evans Farms in which the Company will focus exclusively on realizing the full potential of its BEF Foods business. BEF Foods is the national market share leader in refrigerated dinner side dishes, and is also the market share leader in sausage products in its core Midwest markets. 

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Bob Evans Farms, Inc. announces definitive agreements for the sale of Bob Evans Restaurants and the purchase of Pineland Farms Potato Company, enabling the Company to focus on driving growth of BEF Foods

Net proceeds of Bob Evans Restaurants transaction expected to be used for repayment of outstanding indebtedness and payment of a special dividend of approximately $150 million ($7.50 per share) within approximately 60 days following closing

BEF Foods acquiring Pineland Farms Potato Company for $115 million using new borrowings. Purchase price may be increased if certain financial metrics are achieved during a 24-month period after closing

Both transactions expected to close by the end of fiscal 2017 (April 28, 2017)