FRGI - Fiesta Restaurant to divest Taco Cabana brand to Yadav for $85M

designer491/iStock via Getty Images Fiesta Restaurant Group (FRGI) has entered into a definitive stock purchase agreement for the sale of the Taco Cabana restaurant brand to YTC Enterprises an affiliate of Yadav Enterprises a restaurant company that operates close to 400 locations throughout Northern California, Texas and sixteen other states. The agreement provides for the sale of all of the outstanding capital stock of Taco Cabana, the parent company of the Taco Cabana business, for a cash purchase price of $85M, subject to reduction for certain working capital and other closing adjustments estimated in the aggregate amount of ~$7M to $9M. The transaction is expected to close in the third quarter of 2021. Proceeds from the sale will be used to fully repay Fiesta's ~$74.6M of outstanding term loan borrowings under Fiesta's senior credit facility and to pay divestiture transaction fees and a loan prepayment premium totaling ~$4.6M. As of

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Fiesta Restaurant to divest Taco Cabana brand to Yadav for $85M