Granite City Food & Brewery Ltd. (Nasdaq:GCFB) announced today that it has entered into a master asset purchase agreement to buy the net assets of seven restaurants currently operated under the name “Cadillac Ranch All American Bar & Grill” (Cadillac Ranch).
Pursuant to the agreement, Granite City has closed on the purchase of the assets of one of the restaurants, CR Minneapolis, LLC (“CRM”), which operates a Cadillac Ranch All American Restaurant Bar & Grill in the Mall of America in Bloomington, Minnesota. The purchase price for these assets was $1.4 million, subject to adjustment, including a reduction if the purchase of the remaining assets is not consummated through no fault of Granite City. Granite City has assumed CRM’s lease at the Mall of America for the restaurant with certain modifications.
The restaurants subject to the purchase agreement are owned by Clint R. Field or Eric Schilder, managed by Restaurant Entertainment Group and located in Pittsburgh, Pennsylvania; Oxon Hill, Maryland; Indianapolis, Indiana (one restaurant in operation and another under construction); Hallandale Beach, Florida; Bloomington, Minnesota; and Miami, Florida. Granite City also has an option to buy the assets of an eighth restaurant in Annapolis, Maryland for nominal consideration and assumption of the related lease. The aggregate purchase price for the assets is $9 million, subject to adjustment including an increase of $200,000 for post-acquisition consulting services. Additional debt or equity financing will be required to consummate the balance of the asset purchases.
“We are pleased to have acquired the Mall of America location at this time and look forward to conducting the due diligence necessary to close on the balance of the assets before year end,” said Jim Gilbertson, CFO.“As we have discussed from the day of our initial investment in Granite City Food & Brewery, one of our goals has been to use the Granite City engine as a platform to grow into a broader and more dynamic restaurant company,” said Rob Doran, CEO. “Cadillac Ranch’s distinctive characteristics and unique melding of entertainment and casual dining excite us.”