CAVA to acquire rival Mediterranean restaurant chain Zoe’s Kitchen for $300m
Restaurant acquisition news : Mediterranean restaurant chain CAVA Group has agreed to acquire Texas-based rival fast casual restaurant chain Zoe’s Kitchen for about $300 million.
CAVA acquisition of Zoe’s Kitchen will result in an enlarged restaurant chain which will have a total of 327 restaurants located across 24 US states.
While Zoe’s Kitchen is the bigger of the two with 261 restaurants, the Washington D.C-based CAVA Group operates 66 restaurants.
Founded in 1995, Zoës Kitchen boasts of a menu of fresh, wholesome, made-from-scratch, Mediterranean-inspired dishes.
On the other hand, CAVA Group’s 61 chef-casual restaurants located across 10 states serve a range of chef-crafted dips and spreads that are also sold in over 250 Whole Foods Market locations and other speciality grocery shops in the US.
Commenting on CAVA acquisition of Zoe’s Kitchen, Brett Schulman – CAVA Group CEO said: “Together, these two brands are united by a shared heritage and passion for exceptional Mediterranean cuisine. Now with the addition of Zoe’s Kitchen, we will be able to broaden our geographic footprint and meet the needs of even more guests — whether in Bethesda or Birmingham, Plano or Pasadena — who crave delicious, healthy food without compromise.
“As part of the CAVA family, Zoe’s Kitchen will benefit from CAVA’s track record of bold culinary innovation and leveraging data and technology to drive growth and convenience.”
Under the terms of the deal, the shareholders of Zoe’s Kitchen will get $12.75 in cash for each share they own in the Texan fast casual restaurant.
Kevin Miles – Zoe’s Kitchen CEO, commenting on CAVA acquisition of Zoe’s Kitchen, said: “Our mission was to deliver the highest value obtainable for our shareholders and pursuant to the transaction announced today our shareholders will be receiving a substantial premium to the Company’s unaffected stock price.
“I am proud of the significant work the team has executed over recent years to grow the Zoe’s Kitchen footprint, build brand affinity and secure a leadership position in the Mediterranean and better-for-you category.
“These efforts made it an attractive candidate for a transaction of this kind. I’d like to thank each and every team member who will continue to make Zoe’s a differentiated dining experience every day.”
CAVA acquisition of Zoe’s Kitchen, which is subject to certain closing conditions, is expected to be wrapped up in the fourth quarter of 2018.
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