Brinker International and OTB Acquisition LLC, an affiliate of San Francisco-based Golden Gate Capital, closed the previously announced sale of On The Border Mexican Grill & Cantina.  On The Border is a full-service, casual dining Mexican restaurant brand with 162 restaurants.  Gross proceeds for the transaction total $180 million, which will be adjusted for deal costs and customary closing fees.

Brinker expects to record a gain on the transaction and will generate additional fees from transitional support services provided to On The Border for up to one year. Proceeds from the sale will be used to repurchase shares.

“The closing of the On The Border transaction marks another achievement in our long-term plan as discussed at our March investor conference and emphasizes Brinker’s commitment to return value to shareholders,” said Doug Brooks, President and CEO of Brinker International.

“This is an exciting day for On The Border, its team members and Golden Gate Capital. This is a great brand with great potential,” said Josh Olshansky, a Managing Director at Golden Gate Capital. “We are enthusiastic about the Company’s significant growth opportunities and we are very pleased to partner with the On The Border team to continue the success of this market leading brand.”

Golden Gate also announced today the appointments of Stephen Clark as Chief Executive Officer and Christopher Morris as Chief Financial Officer. Mr. Clark is an experienced restaurant executive with an excellent track-record leading casual dining and Mexican restaurant brands. Mr. Clark previously served as CEO at Bertucci’s, Taco Bueno, and Taco Cabana, where his leadership generated strong same-restaurant sales and profit growth. Mr. Morris joins On The Border with over fourteen years of restaurant industry experience. For the past six years, he served as CFO of Chuck E. Cheese’s, a publicly traded family dining and entertainment chain with over 500 locations.

“Steve and Chris are seasoned and successful restaurant executives,” said Mr. Olshansky. “They bring a unique set of experiences and leadership that will further position the company for success and long-term growth.”

“I am delighted and honored to join the On The Border family and serve as steward of this strong leader in Mexican Casual Dining,” said Stephen Clark. “I look forward to working closely with the team to help the company further build upon its many strengths through excellent execution and innovation.”

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