IRVING, Texas — Del Frisco’s Restaurant Group, Inc. (“Del Frisco’s”) (NASDAQ:DFRG) today announced that it has completed its acquisition of Barteca Restaurant Group (“Barteca”), consisting of Barcelona Wine Bar (“Barcelona”) and bartaco, for $325 million in cash, subject to customary adjustments set forth in the purchase agreement for Barteca’s consolidated debt, cash and working capital. Barcelona and bartaco will hereafter be referred to as Del Frisco’s Emerging Brands.
“We are excited to have completed the acquisition and look forward to what we can achieve with our Emerging Brands. Barcelona and bartaco provide the Del Frisco’s portfolio with significant growth and development opportunities, enabling us to capture market share in the experiential dining segment, while mitigating the risk of seasonality and economic downturns from our more steak-centric concepts,” said Norman Abdallah, Chief Executive Officer of Del Frisco’s Restaurant Group, Inc. “The ‘new’ Del Frisco’s will continue our corporate mission of celebrating life in restaurants through great food, wine and hospitality, allowing us to create truly memorable experiences for our guests, empowering our team members, and enabling our shareholders to reap the competitive advantages that our ‘experienced-based’ lifestyle brands provide us in the marketplace.”
Jeff Carcara has been named Chief Executive Officer of Del Frisco’s Emerging Brands, reporting to Norman Abdallah, Chief Executive Officer of Del Frisco’s, and will continue to lead Barcelona and bartaco. Mr. Carcara is being joined by certain members of his senior management team who together will ensure continuity for these brands and thereby limit execution risk.
We have also engaged a leading consulting firm to work on the Emerging Brands’ integration plan. The integration will be paced and sequenced over the next 12-18 months to ease the transition and help us realize an estimated $3 million-$5 million of annualized run rate synergies by 2020.
The transaction was funded with the proceeds from new senior secured credit facilities, which consist of a new $390 million senior secured term loan and a $50 million revolver.
Piper Jaffray acted as exclusive financial advisor to Del Frisco’s and its Board of Directors and Skadden, Arps, Slate, Meagher & Flom LLP acted as legal advisor. Kirkland & Ellis LLP acted as legal advisor to Barteca. JPMorgan Chase and Citizens Financial Group provided financing for the transaction.
Conference Call Details for Second Quarter Financial Results
As a reminder, we will host a conference call to discuss financial results for our second quarter ended Tuesday, June 26, 2018 on Friday, July 27, 2018 at 7:30 AM Central Time.
A press release with second quarter 2018 financial results will be issued prior to the conference call that same day. Contained within that press release will be our updated 2018 financial guidance to reflect performance year to date, the impact of the Barteca acquisition, and the three-year growth model for the “new” Del Frisco’s.
The second quarter 2018 conference call can be accessed live over the phone by dialing 323-794-2423. A replay will be available afterwards and can be accessed by dialing 412-317-6671; the passcode is 3041445. The replay will be available until August 3, 2018.
The conference call will also be webcast live from our corporate website at www.DFRG.com under the investor relations section. An archive of the webcast will also be available through the corporate website shortly after the conference call has concluded.
About Del Frisco’s Restaurant Group, Inc.
Based in Irving, Texas, near Dallas, Del Frisco’s Restaurant Group, Inc. is a collection of 82 restaurants across 24 states and Washington, D.C., including Del Frisco’s Double Eagle Steakhouse, Barcelona Wine bar, bartaco, Del Frisco’s Grille, and Sullivan’s Steakhouse.
Del Frisco’s Double Eagle Steakhouse serves flawless cuisine that’s bold and delicious, and offers an extensive award-winning wine list and a level of service that reminds guests that they’re the boss. Barcelona serves tapas both simple and elegant, using the best seasonal picks from local markets and unusual specialties from Spain and the Mediterranean, and offers an extensive selection of wines from Spain and South America featuring over 40 wines by the glass. bartaco combines fresh, upscale street food and award-winning cocktails made with artisanal spirits and freshly-squeezed juices with a coastal vibe in a relaxed environment. Del Frisco’s Grille is modern, inviting, stylish and fun, taking the classic bar and grill to new heights, and drawing inspiration from bold flavors and market-fresh ingredients. Sullivan’s Steakhouse is a great neighborhood place for a big night out on the town – with outstanding food, hand-shaken martinis, an award winning wine list, and live entertainment all under one roof.
Source: Del Frisco’s Restaurant Group, Inc.
