Diversified Restaurant Holdings To Purchase Eight Buffalo Wild Wings(R) Restaurants In Indiana And Illinois
SOUTHFIELD, Mich., Aug. 22, 2012 (GLOBE NEWSWIRE) -- Diversified Restaurant Holdings, Inc. (OTCQB:DFRH) ("DRH" or the "Company"), the owner, operator, and franchisor of the unique, full-service, ultra-casual restaurant and bar Bagger Dave's Legendary Burgers Tavern ® ("Bagger Dave's") and a leading franchisee for Buffalo Wild Wings ® ("BWW"), announced today it executed an agreement to acquire eight Buffalo Wild Wings ® restaurants located in Indiana and Illinois for $14.7 million. Terms of the transaction include an additional franchise agreement for a location in Indiana.
T. Michael Ansley, President and CEO of DRH commented, "This is a very attractive acquisition opportunity for us as the locations fit within our strategic expansion plans in the Midwest. We believe that we can leverage our existing operational infrastructure and drive improved margins and stronger bottom-line results in these restaurants. We are also aggressively expanding our unique Bagger Dave's concept through a combination of corporate-owned and franchised locations within the same footprint, and expect to have doubled our locations by opening a total of six new Bagger Dave's in 2012, including our first in Indiana.
The restaurants are located in Northwest Indiana and Southeast Illinois, and includes a location in Lincoln Park; one of Chicago's most prominent neighborhoods. DRH expects to complete the purchase by the end of October 2012 subject to customary closing conditions.About Diversified Restaurant Holdings Diversified Restaurant Holdings, Inc. ("DRH" or the "Company") is the owner, operator, and franchisor of the unique, full-service, ultra-casual restaurant concept, Bagger Dave's Legendary Burger Tavern ® ("Bagger Dave's") and is a leading Buffalo Wild Wings ® ("BWW") franchisee. Between the two concepts, the Company currently operates 29 restaurants in Michigan and Florida, with an additional four Bagger Dave's and three BWW restaurants scheduled to be opened by year end 2012. The Company routinely posts news and other important information on its Web site at www.diversifiedrestaurantholdings.com . Bagger Dave's offers a full-service, family-friendly restaurant and bar with a casual, comfortable atmosphere. The menu features freshly-made burgers (never frozen), accompanied by more than 30 toppings from which to choose, fresh-cut fries, hand-dipped milkshakes, and a selection of craft beer and wine. Signature items include Sloppy Dave's BBQ ®, Train Wreck Burger ®, and Bagger Dave's Amazingly Delicious Turkey Black Bean Chili ®. The Bagger Dave's concept emphasizes local flair by showcasing historical photos of the city in which each restaurant resides and features an electric train that runs above the dining room and bar areas. Currently, there are seven corporate-owned locations in the state of Michigan and an executed area development agreement to franchise six Bagger Dave's in five states outside of Michigan. Bagger Dave's first franchisee opened in June 2012 in Cape Girardeau, Missouri. DRH is approved to franchise Bagger Dave's in the states of Illinois, Indiana, Kentucky, Michigan, Missouri, Ohio, and Wisconsin. For more information, visit www.baggerdaves.com . DRH operates 22 BWW restaurants: 14 in Michigan and eight in Florida. The Company continues to build new BWW restaurants in fulfillment of its 32-store Area Development Agreement ("ADA") with franchisor Buffalo Wild Wings, Inc. (Nasdaq:BWLD). This agreement, in addition to the six BWW restaurants opened prior to the ADA and the announced acquisition of eight BWW restaurants in Illinois and Indiana, suggests that the Company will operate 46 BWW by 2017.
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