SPB Hospitality Agrees to Acquire J. Alexander's Holdings Inc.

Rhea-AI Summary

SPB Hospitality announced its acquisition of J. Alexander's Holdings Inc. (NYSE:JAX) for $14.00 per share in an all-cash deal, totaling approximately $220 million. This acquisition represents a 14% premium over JAX's closing price on July 1, 2021. The transaction is expected to close in Q4 2021, pending JAX shareholder approval. SPB aims to consolidate its leadership in the hospitality industry by integrating J. Alexander's renowned brands and upscale dining experience, which includes 47 locations across 16 states.

Positive

• Acquisition valued at $220 million, enhancing SPB's portfolio.
• 14% premium over JAX's prior closing price indicates favorable valuation.
• Integration of J. Alexander's established brands supports SPB's growth strategy.

Negative

• None.

HOUSTON, July 2, 2021 /PRNewswire/ -- Today, SPB Hospitality, an industry leading operator and franchisor of steakhouses, pizza and craft brewery restaurants, announced that it has agreed to acquire J. Alexander's Holdings Inc. [NYSE:JAX] at $14.00 per share in an all-cash merger, which equates to an equity value of approximately $220 million. This represents a 14% premium over J. Alexander's closing price on July 1, 2021, which was the last trading day prior to entering into the definitive merger agreement. The transaction is expected to close early in the fourth quarter of 2021, subject to customary closing conditions including the approval of the merger by J. Alexander's shareholders.

J. Alexander's Holdings, Inc. operates 47 upscale restaurants with award-winning brands including J. Alexander's, Stoney River Steakhouse and Grill, Redlands Grill, Overland Park Grill and Merus Grill. For more than 30 years, J. Alexander's guests have enjoyed a contemporary American menu and unparalleled polished service.

"We are honored to acquire these storied brands and look forward to welcoming this experienced team into the SPB family," said SPB Hospitality Chief Executive Officer Jim Mazany. "This acquisition advances our vision to become the industry leader and a pioneer of hospitality, while developing our portfolio of brands and delivering best-in-class returns, one great restaurant at a time."

Morgan McClure, President of SPB Hospitality and Managing Director at Fortress Investment Group, stated, "We have enormous confidence in SPB leadership and their vision for building a true industry leader in the hospitality space. J. Alexander's exceptional team and established brands mark an important addition to the SPB family and a significant step forward in achieving SPB's vision."

J.P. Morgan Securities LLC and Configure Partners LLC served as financial advisors and Hunton Andrews Kurth LLP served as legal counsel to SPB Hospitality and Fortress Investment Group. Piper Sandler & Co. served as financial advisor to J. Alexander's Holdings Inc. and Bass, Berry & Sims PLC acted as the company's legal counsel.

About SPB Hospitality
SPB Hospitality is a leading operator and franchisor of full-service dining restaurants, spanning a national footprint of hundreds of restaurants and breweries in 38 states and the District of Columbia. Based in Houston, the company's diverse portfolio of restaurant brands includes Logan's Roadhouse, Old Chicago Pizza & Taproom, Rock Bottom Restaurant & Brewery, Gordon Biersch Brewery Restaurant, and a collection of specialty restaurant concepts. For more information about SPB Hospitality, visit spbhospitality.com.

About J. Alexander's Holdings, Inc
J. Alexander's Holdings, Inc. is a collection of restaurants that focus on providing high-quality food, outstanding professional service and an attractive ambiance. The Company presently operates 47 restaurants in 16 states. For additional information, visit JAlexandersHoldings.com.

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SOURCE SPB Hospitality

FAQ

What is the value of the acquisition of J. Alexander's Holdings by SPB Hospitality?

The acquisition is valued at approximately $220 million, with SPB paying $14.00 per share in cash.

When is the expected closing date for the SPB Hospitality and J. Alexander's merger?

The transaction is expected to close early in the fourth quarter of 2021, subject to shareholder approval.

What premium does the acquisition offer over J. Alexander's last closing stock price?

The acquisition offers a 14% premium over J. Alexander's closing price on July 1, 2021.

How many restaurants does J. Alexander's Holdings operate?

J. Alexander's Holdings operates 47 restaurants across 16 states.

What strategic benefits does SPB Hospitality expect from acquiring J. Alexander's?

SPB expects to enhance its brand portfolio and solidify its position as a leader in the hospitality industry.