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The Cheesecake Factory Acquires Fox Restaurant Concepts

The Cheesecake Factory Acquires Fox Restaurant Concepts


CALABASAS HILLS, CA
Thursday, August 1st, 2019

Following the release of a new cheesecake flavor on National Cheesecake Day, The Cheesecake Factory is adding more to its repertoire. The prominent eatery is expanding with its latest acquisition of Fox Restaurant Concepts (FRC) and the remaining interest in North Italia, reinforcing its leadership position in experiential dining.

David Overton, Chairman and CEO, The Cheesecake Factory Incorporated“Since making our initial minority investments in North Italia and Flower Child in 2016, we have not only helped fuel the growth of both brands, but also developed a deep relationship with Sam Fox at Fox Restaurant Concepts,” said David Overton, Chairman and Chief Executive Officer of The Cheesecake Factory Incorporated. “We realized the true potential of this relationship as we worked through the integration process for our planned acquisition of North Italia. It became evident that the combination of two of the most experiential and entrepreneurial restaurant companies could drive greater value as one organization.”

According to the press release, the transactions will be completed for $308 million in cash at closing. An additional $45 million will be due ratably over the next four years. This follows an $88 million investment in the North Italia and Flower Child concepts over the last three years by The Cheesecake Factory in anticipation of the purchase. The cash due at closing will be funded by drawing on The Cheesecake Factory's upsized revolving credit facility and cash on hand, with the Board of Director's approval.

The Cheesecake Factory is expanding with its latest acquisition of Fox Restaurant Concepts and the remaining interest in North Italia

Overton continued, “In turn, we have decided to bring together North Italia and Fox Restaurant Concepts, including Flower Child, with The Cheesecake Factory to reinforce our leadership position in experiential dining. With the power of The Cheesecake Factory brand, infrastructure, and growth potential, complemented by an additional growth vehicle in the North Italia concept and an incubation engine to develop concepts of the future, we believe we will be even better positioned to provide our guests with exceptional dining experiences, offer growth opportunities for our respective teams, and maximize long-term value for our shareholders. We look forward to continuing to work with Sam to expand the businesses.”

North Italia’s operations will now be located at The Cheesecake Factory Incorporated’s corporate headquarters in Calabasas Hills, California, to help scale the concept nationally and to enable a smoother integration process.

Sam Fox, Founder and CEO, Fox Restaurant Concepts“This partnership will be the first of its kind for the restaurant industry,” Sam Fox, Founder and Chief Executive Officer of Fox Restaurant Concepts, said. “David Overton and I quickly realized the magic occurring between our organizations while we worked through North Italia’s integration. With our aligned cultures and philosophies, The Cheesecake Factory is the right partner to embrace our creative spirit, enabling us to innovate concepts while providing the infrastructure and capital to scale.”

The Cheesecake Factory will acquire the remaining interest in the North Italia concept for approximately $130 million in cash, bringing total consideration to $174 million, including $44 million previously invested. FRC will be acquired for approximately $178 million in cash at closing and $45 million due ratably over the next four years.

What’s to be expected now that The Cheesecake Factory’s umbrella has expanded? Deli Market News will continue to report.

The Cheesecake FactoryFox Restaurant Concepts