DineEquity Selling Off 30 DC Applebee’s Restaurants

DineEquity Selling Off 30 D.C. Applebee's RestaurantsThe company that owns IHOP and the Applebee’s Neighborhood Grill & Bar restaurant chains has announced that they are selling some of the restaurants in the Applebee’s chain.  DineEquity, Inc. said that they have entered into a purchase agreement for assets of 30 Applebee’s restaurants in Washington, D.C. and its surrounding area.

The purchaser is Potomac Family Dining Group.  There is no financing contingency included in the purchase agreement but closing of the deal will be subject to the transfer of liquor licenses and other regulatory processes.

The principals expect the deal to close during the first quarter of next year.  DineEquity is expected to achieve around $27 million after tax and will also reduce its financing obligations related to ten of the properties by about $20 million.

The chairman and chief executive officer of DineEquity, Julia Stewart, said that the company was happy that they are executing their strategic goal to turn the Applebee’s restaurant chain into a more franchised system through the sale of the 30 properties.  Stewart added that she feels that the Potomac Family Dining Group will be a great franchise partner who has excellent capabilities in financing, operating and development.

Timothy George, speaking on behalf of the Potomac Family Dining Group, said that acquiring the restaurants represented an opportunity for his company as Applebee’s is well situated to extend its market share due to its strong brand recognition in the Washington, D.C. area.