DALLAS — Brinker International, Inc. has signed a letter of intent to acquire 116 Chili’s Grill & Bar restaurants from ERJ Dining. Louisville, Ky.-based ERJ Dining has been a franchisee of Brinker’s for the past 14 years.
According to Brinker, the Chili’s restaurants primarily are located in the Midwest and generate approximately $300 million in annualized revenue.
“This acquisition is a compelling opportunity to further invest in our brand, broaden our scale and create growth in earnings and cash flow,” said Joseph G. Taylor, chief financial officer and executive vice-president of Brinker. “We appreciate the relationship we developed with ERJ over the years and view these well-established restaurants as a solid foundation for further growth in these markets.”
Financial terms of the transaction were not disclosed, but Brinker said it plans to fund the purchase using its existing credit facility. The acquisition is expected to be earnings-per-share accretive and generate incremental free cash flow in fiscal 2020, the company said.
One of the world’s largest casual dining restaurant companies, Brinker opened, operated or franchised 1,623 Chili’s Grill & Bar restaurants as of March 27.