Hooters in Four States Sold
Hooters of America, Inc. announced that its oldest franchisee, R.M.D. Corp. of Louisville, Kentucky has reached an agreement for the sale of its assets to a corporation headed by one of its International Franchisee groups.
The buyer is an entity which controls the franchisee rights for Australia and New Zealand and currently operates two Hooters Restaurants in Australia. South Pacific Partners, Ltd (SPP) has entered into a letter agreement to acquire substantially all of the assets of R.M.D. Corp. (RMD). SPP is the operating arm of Australian Enterprises, L.P. (AE), the Hooters franchisee for Australia and New Zealand. On a combined basis, the new company will operate 41 Hooters restaurants and expects to open several locations in 2008. The acquisition is expected to close in the first quarter of 2008.
RMD is owned by Neal Harding, who opened the first ever Hooters franchise location in Louisville, Kentucky in 1988. Today the RMD franchise group consists of 39 Hooters in Indiana, Kentucky, Ohio, and Tennessee. The transaction includes the 39 restaurants, certain real estate holdings and the future development rights for Hooters within the four states. Mr. Harding will continue to be involved with the Hooters brand on the International front through his ownership of World Wide Wings, LLC, a company that owns 8 Hooters in Canada, England and the Caribbean.
“I am very excited about this transaction,” stated Coby Brooks, the President and CEO of Hooters of America, Inc. “Neal Harding has been a leader within the franchisee community. He was our first and finest franchisee. I can’t wait to see what he will accomplish now that he is able to focus his efforts exclusively on International expansion.”
Terms of the transaction have not been disclosed. Mastodon Ventures, Inc. an Austin, Texas based M&A advisory firm has been retained to advise AE and SPP in connection with the acquisition.
