TGI Fridays’ largest global franchisee has a deal to buy the chain and take it public overseas.
The casual-dining brand has an agreement with U.K.-based Hostmore plc for an all-share acquisition valued at $220 million, according to a company filing. It’s expected to close in the third quarter of this year.
The companies said the combination would create a global hospitality brand with more financial flexibility and scale. It will have a total of nearly 600 restaurants in 44 countries, about a third of which are in the U.S. It will also boost the number of corporate-owned Fridays restaurants to 189. Hostmore operates 89 units in the U.K.
The new entity will be called TGI Fridays plc and will trade on the London Stock Exchange under the stock symbol TGIF. Its global headquarters will remain in Dallas, and CEO Weldon Spangler will continue to lead the company.
It comes as TGI Fridays has worked to breathe new life into its U.S. business after years of sales declines and closures. Domestic systemwide sales fell 18% last year as the chain closed nearly 60 restaurants, according to Technomic Top 500 data. It reported total global sales of $1.4 billion in 2023.
“We have been laser-focused on revitalizing the brand and driving growth through consumer-centric offerings, the optimization of our restaurant portfolio and the addition of senior team members,” Spangler said in a statement. “This transaction represents the next step in our journey as it increases our corporate-owned restaurant locations and provides capital to expand our presence globally.”
Hostmore Chariman Stephen Welker said the deal will give the company more scale and financing as it looks to expand the brand. The franchisee has been in the midst of its own turnaround effort in recent years focused on reducing costs, paying down debt and growing organically.
“We look forward to presenting our existing and new shareholders the opportunity to participate in the significant value creation potential of the combined group going forward,” Welker said in a statement.
Since 2014, TGI Fridays has been owned by the U.S.-based private-equity firm TriArtisan Capital Advisors.
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