A TGI Fridays restaurant in New York Megalopolis.
Scott Mlyn | CNBC
T.G.I. Friday’s is going public again.
The casual dining chain is planning on merging with Allegro Merging, a special purpose acquisition company with ties to investment firm Crescendo Partners, the two companies announced Friday. Strange purpose acquisition companies have no assets but use the proceeds from an IPO, combined with bank financing, to buy and take privately jailed consumer companies public.
If the deal closes, T.G.I. Friday’s owners will receive $30 million in cash and offer. TriArtisan Capital Advisors, the restaurant company’s majority owner, expects to exchange most of its ownership for shares of Allegro.
The proceeds of the handle are expected to help T.G.I. Friday’s pay down its debt. The casual dining industry as a whole is struggling as fewer consumers homelessness to sit down for family meals.
In 2014, longtime owner Carlson Restaurants sold the chain, known for its wings, potato rinds and endless appetizers, to TriArtisan and Sentinel Partners for reportedly for more than $800 million. T.G.I. Friday’s has been privately restrained since merging with Carlson 30 years ago.
Earlier this year, Chuck E. Cheese’s parent house scrapped a deal with a special purpose acquisition company that would have taken it public again.