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It's Official: IHOP Buys Applebee's For $2.1 Billion

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matcom Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:07 PM
Original message
It's Official: IHOP Buys Applebee's For $2.1 Billion
<snip>

NEW YORK (CNNMoney.com) -- IHOP Corp. said Monday it plans to buy bar-and-grill chain Applebee's International Inc. for $25.50 per share to expand beyond its iconic pancake restaurants, sending IHOP's shares up nearly 12 percent to an all-time high.

The all-cash deal, which represents a 4.6 percent premium to Applebee's closing price on Friday, is worth about $1.9 billion, based on the company's 75,072,000 shares outstanding as of April 1.

A source close to the deal said it included about $155 million in debt, bringing the total value to $2.1 billion, the figure cited by the companies.

Excluding charges related to the acquisition, IHOP expects the transaction to add to earnings beginning in 2008.

IHOP's (up $4.70 to $60.95, Charts) shares were 9 percent higher on the New York Stock Exchange by mid-day Monday.

IHOP, with its market capitalization of $980.6 million, according to Reuters data, is using securitized debt backed mostly by Applebee's assets to fund the purchase of the much larger company, whose market value is $1.82 billion.

http://money.cnn.com/2007/07/16/news/companies/ihop_app...
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BlooInBloo Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:09 PM
Response to Original message
1. Sweet! Fuckin hate those cookie-cutter places....
... Applebees, Chile's, etc. ad nauseum.

Caveat: Red Robin gets a pass because of its good morning burger.
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Left Is Write Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:40 PM
Response to Reply #1
6. Applebee's gets a pass from me, because nearly everything on the Tyler Florence
menu is pretty damned good.

Last week I went there and had his applewood smoked chicken, which was served with garlic fries (garnished with shaved parmesan) and a spinach/apple/feta/cranberry salad with a vinaigrette dressing.
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xmas74 Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:15 PM
Response to Original message
2. Maybe they'll convert the crappy Applebee's in my town
into an IHOP. I'm craving some stuffed French toast right about now.
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underpants Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:18 PM
Response to Original message
3. WOW that is 262,828,536 orders of Chicken Quesadilla Grande
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ruiner4u Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:19 PM
Response to Original message
4. IHOP has 2.1b?
but, Yay! I love ihop... :)
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noonwitch Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:22 PM
Response to Original message
5. I like Applebee's southwest chicken salad
Max and Erma's is better, but theirs is good.

I worked at an IHOP in the 80s. It was a nasty place-the building doesn't even exist anymore, it was torn down. But the one I worked at was in the parking lot of Woodland Mall in Grand Rapids, MI. My boss was a pervert who gave us all short uniforms so he could look at our legs. The meat they served there was gross-not the sausage, but the hamburgers. The only things I would eat there were breakfast foods. They bought the pancake and waffle mix from the national company.

IHOP was a franchise operation. The guy who owned the place (who was a really nice guy) owned the other one in town and two other restaurants-Granny's Kitchen and a converted Dog n Suds in Rockford. The other restaurants were fine. I blame the manager of the one I worked at.
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hyphenate Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:48 PM
Response to Original message
7. Haven't been in an Applebee's for quite some time
because I don't care for their food. It was also on the high price end, too. Anything that IHOP can do to change the quality of the food and lower the prices sounds good to me.

PS: Haven't been in since the bally-hooed Tyler Florence menu, but I imagine they increased the price to accommodate the new "nutritional" dishes?

Back in New England, I'm much happier with the 99, Picadilly Pub, Bertucci's, and other such. In L.A., I loved B.J.'s Pub and Grill. I miss B.J.'s, but not a whole lot else in terms of eating out.
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EstimatedProphet Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 01:54 PM
Response to Original message
8. Now the food can only get better at Applebee's
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Burma Jones Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 02:08 PM
Response to Original message
9. Now all they have to do is buy Olive Garden
and make Cornflake Chicken
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Akoto Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 02:11 PM
Response to Original message
10. Hope this won't affect their conversion to trans fat-free oil.
Edited on Mon Jul-16-07 02:11 PM by Akoto
I had started eating there again because of that change.
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