Carrols Restaurant Group, Inc. (Nasdaq: TAST), the parent company of Carrols Corporation, announced its intention to divide the company's business into two separate, publicly traded companies through the tax-free spin-off of its Hispanic Brands to its stockholders. The company to be spun-off will own and operate the Pollo Tropical® and Taco Cabana® businesses which had combined revenues of $439.1 million in 2010. Carrols Restaurant Group, Inc. will continue to own and operate its more than 300 franchised Burger King® restaurants.
The company hopes to complete the process by the end of 2011.
Carrols plans to refinance its existing debt and to separately finance the Burger King and Hispanic Brand businesses to facilitate the separation. The company is also developing detailed plans for the proposed spin-off, including transaction structure, timing, and composition of senior management and the boards of directors, capital structure and other matters. The plan will be subject to approval by the Carrols' Board of Directors, customary regulatory and other approvals, and the receipt of a favorable IRS tax ruling, among other things. The Company expects to complete the spin-off by the end of 2011. Further details will be disclosed at a later date.