ROTI,possible 200% to 300% gainner news release on the 28th of July,.,.,.,
Tuesday July 28, 3:59 pm Eastern Time
Company Press Release
SOURCE: TRC Acquisition Corporation
Tanner's Restaurants To Take Over Control of Publicly Traded Harvest
Restaurant Group, Inc.
$6,000,000 Of New Equity Committed to Fund Aggressive Expansion of Tanner's
ATLANTA, July 28 /PRNewswire/ -- TRC Acquisition Corporation, the corporate
parent of Tanner's Restaurants, has
entered into a definitive agreement to merge with, and take control of, San Antonio
based Harvest Restaurant Group, Inc.
(Nasdaq: ROTI - news). The merger, which is subject to Harvest shareholder approval,
is expected to close in September.
As part of this transaction, an investor group will invest $6,000,000 in new equity for
the public Tanner's entity, primarily to
fund new unit expansion of Rick Tanner's Original Grill restaurants. Tanner's, founded in
1986, currently has eleven (11)
company owned and operated restaurants in the metropolitan Atlanta area. The
company also has franchise restaurants in
Montgomery, Alabama and Macon, Georgia. Annualized system-wide sales for 1998
are approximately $17,000,000.
$2,000,000 of new equity has already been provided to finance the immediate
development of five additional Rick Tanner's
Restaurants, expected to open before the end of February, 1999. The four million dollar
balance of funding will be provided
upon closing of the TRC/Harvest merger.
Additionally, three franchise stores are breaking ground in August and expect to open
before the end of 1998. They include a
store in Oxford, Alabama and stores in Albany and Paulding County, Georgia. These
eight new stores being added to the
Tanner's system in the next seven months will bring the total store count to twenty-one.
Plans for 1999 call for opening seven
additional company owned stores and seven franchise stores. TRC expects annualized
system-wide revenues will be in excess
of $45,000,000 by the end of 1999.
TRC Acquisition Corporation was organized by hospitality industry veteran Clyde E.
Culp, III and Atlanta investment banker
John Feltman to do a leveraged buy-out of Rick Tanner's Original Grill Restaurants in
late 1996, with the support of private
equity investors and Sirrom Capital Corporation [NYSE:SIR - news]. Culp will serve
as Chairman and CEO of the new
Tanner's. In his twenty-eight year career in the industry he has been President and CEO
of Long John Silver's, President and
CEO of Embassy Suites and Founder/Chairman of Davco Foods, the largest Wendy's
franchisee.
''This merger into a publicly traded entity and the new equity funding enable Tanner's to
continue executing its strategic goal of
national expansion, beginning immediately with new restaurant growth in the Southeast
and Southwest,'' Culp said.
TRC Acquisition Corporation operates and franchises Rick Tanner's Original Grill
restaurants, offering friendly table service of
home-style meals featuring chicken, barbeque, and a selection of vegetables.
Except for the historical information contained herein, the matters set forth in this press
release are forward-looking statements
within the meaning of the ''safe harbor'' provisions of the Private Securities Litigation
Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties that may cause actual
results to differ materially. These risks
are detailed in the Company's period reports filed with the Securities and Exchange
Commission. These forward-looking
statements speak only as of the date hereof. The Company disclaims any intent or
obligation to update these forward-looking
statements.
SOURCE: TRC Acquisition Corporation
More Quotes
and News:
Harvest Restaurant Group Inc (Nasdaq:ROTI - news)
Sirrom Capital Corp (NYSE:SIR - news) |
