Restaurant holding company ARC Group has reached an agreement to purchase Tilted Kilt Pub and Eatery.
ARC Group will acquire all of the assets of Tilted Kilt from SDA Holdings LLC for $10, per a release announcing the deal. As part of the transaction, ARC will assume debt of approximately $1.8 million, future payment obligations of approximately $1.5 million, and will issue approximately 1.4 million shares of common stock. Tilted Kilt generated almost $14 million in revenue during 2017. The closing is expected to occur by the end of the year.
The announcement comes as no surprise; the first release that this deal was on the table came in July, 2018, with a statement that Tilted Kilt was on the brink of being acquired by ARC Group.
“The Tilted Kilt acquisition is in line with our strategy of targeting undervalued/underperforming restaurant chains with immediate cash flow potential, where we have the ability to leverage our franchising, marketing, operational, logistics and financial expertise across brands, while maintaining a strict focus on driving sales, reducing costs, and expanding margins,” said Seenu G. Kasturi, president and chief financial officer of ARC Group.
n August of this year, ARC acquired Fat Patty’s, a four-unit chain restaurant concept. ARC also owns the Dick’s Wings & Grill restaurant chain.
Tilted Kilt operates 34 restaurants systemwide.