Brinker finalizes sale of Romano's Macaroni Grill

by Staff
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DALLAS — Brinker International, Inc. and Mac Acquisition L.L.C., an affiliate of San Francisco-based Golden Gate Capital, said they have closed the previously announced transaction for the sale of a majority interest in Romano’s Macaroni Grill. Brinker sold a roughly 80% stake in the business for $88 million, and expects to receive a potential tax benefit of $44 million for a total consideration of approximately $132 million. The company plans to use the proceeds to pay down outstanding debt.

"We greatly appreciate the hard work, patience and tenacity our respective teams exhibited to finalize this complex transaction," said Chuck Sonsteby, chief financial officer of Brinker International. "The ability to complete the transaction in the midst of the current economic environment speaks to the long-term prospects for the brand as part of the Golden Gate family."

With the closing, Golden Gate Capital and its affiliates own 80.1% of Mac Acquisition L.L.C. while Brinker affiliates hold a 19.9% ownership stake.

As part of the transaction, Brinker will continue to provide transition services for a minimum of one year and Romano’s Macaroni Grill restaurants will continue to participate in Brinker’s gift card program. Additionally, Doug Brooks, chairman and chief executive officer of Brinker International, will serve on the board of directors of Mac Acquisition L.L.C.

In addition to Romano’s Macaroni Grill, other Brinker restaurant brands include Chili’s Grill & Bar, On The Border Mexican Grill & Cantina and Maggiano's Little Italy.

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