DineEquity (DIN) to Sell 65 Company-Operated Applebee's in Michigan for Proceeds of $61M

July 25, 2012 8:18 AM EDT
DineEquity, Inc. (NYSE: DIN) today announced that it has entered into an asset purchase agreement with TSFR Apple Venture LLC for the sale of 65 Applebee's company-operated restaurants located in Michigan. The agreement does not contain financing contingencies, but closing is subject to regulatory processes related to liquor license transfers and other closing conditions.

The transaction for 65 Applebee’s restaurants is expected to result in net proceeds after taxes of approximately $61 million and reduce DineEquity's sale-leaseback related financing obligations by approximately $38 million. The Company expects to pay approximately $9 million related to the settlement of net working capital liabilities and deal costs. Additionally, the sale of these Applebee's company-operated restaurants will result in approximately $2.6 million in annualized general and administrative savings.

The Company anticipates closing these transactions in the third or early fourth quarter of 2012. DineEquity will update its 2012 financial performance guidance upon closing of these transactions.

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