Granite City Food & Brewery Ltd. (NASDAQ:GCFB) announced today that it has entered into an asset purchase agreement for the purchase of the assets of the Cadillac Ranch All American Bar & Grill restaurant in Pittsburgh, Pennsylvania for $900,000. The Pittsburgh asset purchase will close at such time as a liquor license can be issued by the Pennsylvania Liquor Control Board, which the parties expect to occur late in the first quarter or in the second quarter of this year.
Granite City previously announced its purchase of the assets of five other Cadillac Ranch restaurants (Bloomington, Minnesota; Miami; Florida; Oxon Hill, Maryland; Annapolis, Maryland; and Indianapolis, Indiana). Under the parties’ master asset purchase agreement, Granite City has the right to purchase the assets of a Cadillac Ranch restaurant under construction in Indianapolis, Indiana, and a Cadillac Ranch restaurant in Hallandale Beach, Florida, subject in both cases to satisfaction of the conditions precedent to the parties’ obligations under the master agreement.
About the Company
In May 2011, the Company received a $9.0 million infusion of equity capital from Concept Development Partners (CDP) in partnership with Dallas-based private equity firm, CIC Partners, along with $10.0 million in debt financing from Fifth Third Bank. The transaction brought the Company capital, additional management and several new, experienced board members, including Mike Rawlings, former President of Pizza Hut, a Founding Partner of CIC Partners, and current Mayor of Dallas, Lou Mucci, former CFO of BJ’s Restaurants, Michael Staenberg, President of THF Realty, Fouad Bashour, a Founding Partner of CIC Partners, and Rob Doran, former Executive Vice President of McDonalds’s. Rob Doran now serves as the Company’s CEO. Since CDP’s investment, the Company has been developing growth plans for existing Granite City restaurants as well as the construction of new Granite City restaurants, such as the Troy, Michigan location set to open in early 2012. In connection with the Company’s acquisition of certain Cadillac Ranch restaurant assets in late 2011, Fifth Third Bank increased the Company’s credit facility by an aggregate of $12.0 million.