Bob Evans Farms Inc. announced it had entered into a definitive agreement for the sale of its Mimi's Cafe restaurant chain to LeDuff America Inc.
Dallas, Texas-based LeDuff America owns and operates multiple bakery cafés, coffee houses and boulangeries, including La Madeleine Country French Café, Bruegger’s Bagels, Timothy’s Coffee and Michel’s Baguette. LeDuff America is the U.S. subsidiary of Rennes, France-based Groupe LeDuff SA.
The purchase price for the transaction is $50 million, consisting of $20 million in cash and a note for $30 million, subject to customary purchase price allocations and adjustments as of closing. The transaction is expected to close within the next 45 days.
The deal comes on the heels of Bob Evans’ review of strategic alternatives for Mimi's Cafe that was announced in November 2012, which included a process to find a buyer that would give a good value to shareholders and support the long-term growth potential of Mimi's Café, said Steve Davis, chairman and chief executive officer of Bob Evans, in a statement. “This transaction is a positive development for Bob Evans as well as for Mimi's Café. After closing the sale, Bob Evans will have reset itself to better focus efforts and investments on achieving our long-term commitment to grow earnings per share 8 percent to 12 percent annually,” he added.
The company said it expects to provide certain transitional support services on a contractual basis to Mimi's Cafe during a period following the close of the transaction.