Bob Evans Restaurants Sold

NEW ALBANY, OH - Bob Evans has sold its line of restaurants so that it can focus on its refrigerated foods business, which specializes in dinner side dishes and sausages. Golden Gate Capital purchased the line of restaurants for $565 million.

According to the company's website, there are more than 500 full-service Bob Evans restaurants throughout the Midwest, Southeast, and Mid-Atlantic. The restaurants will continue to operate under new management.

“Bob Evans Restaurants is an exceptional brand, uniquely differentiated by its deep-rooted heritage of farm-fresh food and heartfelt hospitality. As an independent company partnered with Golden Gate Capital, Bob Evans Restaurants will be well-positioned to sharpen its focus on enhancing the business, with increased flexibility and resources to grow the company for the long-term," Josh Cohen, the managing director at Golden Gate Capital, said in a press release.

The first Bob Evans restaurant opened in 1962 in Rio Grande, Ohio. Current Bob Evans CEO Saed Mohseni will continue to lead the restaurant chain. Bob Evans President Mike Townsley will absorb the departing Mohseni's role.

"The sale of Bob Evans Restaurants enables us to concentrate exclusively on BEF Foods, our fastest growing and most profitable segment," said Mohseni in a press release. "We believe this focus will result in higher returns for our shareholders and, as a more focused private business, Bob Evans Restaurants will be better able to deliver on its brand promise of providing quality food and hospitality to every guest at every meal."

Along with selling off its restaurant chain, Bob Evans also announced the purchase of Pineland Farms Potato Company, a Maine-based potato farm and refrigerated potato provider. The acquisition of Pineland cost Bob Evans approximately $115 million.

Both the sale of the restaurants and the acquisition of Pineland will close by the end of fiscal year 2017.

Photo by Rick Uldricks, Patch