DineEquity Sells 30 Applebee’s Restaurants

DineEquity Inc. has sold 30 company-operated Applebee’s Neighborhood Grill & Bar restaurants in Washington D.C. and surrounding areas, announced the Glendale-based company that owns the restaurant chain. The sale to Potomac Family Dining Group is expected to close during the first quarter of 2011. The transaction is expected to produce cash proceeds of about $32 million, including inventory, and is expected to result in a tax liability of about $5 million. The sale is part of the company’s strategy to transition Applebee’s into a more highly franchised restaurant system, said Julia Steward, DineEquity’s chairman and CEO. “With Potomac Family Dining Group, we have selected an excellent franchise partner who is new to the Applebee’s system and processes significant operating, development and financial capabilities,” Stewart said. DineEquity has sold 193 Applebee’s company-operated restaurants since its acquisition of Applebee’s International in November 2007. Once pending transactions are completed for both Applebee’s and IHOP restaurants, 93 percent of DineEquity’s restaurants will be franchised. Potomac Family Dining Group was established in 2010 in order to facilitate the acquisition of the 30 Applebee’s restaurants. The group was formed by Timothy George, an investment banking veteran who served as a financial advisor to DineEquity on its 2007 acquisition of Applebee’s International.