TGI Fridays, an American casual dining chain, announced plans to merge with its UK franchisee Hostmore before going public on the London Stock Exchange. The all-share deal to take TGI Fridays public is valued at approximately $220 million. The restaurant’s headquarters will remain in Dallas, Texas, and its CEO Weldon Spangler will retain his position. Spangler expressed that the merger will lead to an increase in corporate-owned restaurant locations and provide capital for global expansion.
Despite unclear details on the number of additional locations TGI Fridays will open, the chain already has more than 600 outlets in 44 countries, including around 233 in the US and locations across South America, the UK, and Asia. After the merger, the new company will be responsible for 189 restaurants in the US and UK, with the other locations being owned by independent franchisees. The deal with Hostmore, expected to close in the third quarter pending regulatory approval, will allow TGI Fridays to progress with its plans for a public offering.
Plans for TGI Fridays to go public have been in the works since 2019 when it announced a merger with special purpose acquisition company Allegro Merger. However, the deal was disrupted by the COVID-19 pandemic, causing financial market crisis and impacting the restaurant industry. In response to pandemic challenges, TGI Fridays closed 36 underperforming restaurants across the US, including multiple locations in states such as New York, New Jersey, Massachusetts, Texas, and Virginia. The company also offered transfer opportunities to more than 1,000 employees affected by the closures.
Following the closure of underperforming locations, TGI Fridays revealed the sale of eight previously corporate-owned restaurants in the Northeast to former CEO Ray Blanchette. Blanchette, who had served as the chain’s chief for five years, resigned in May 2023 as the company entered a phase of revitalization. These strategic moves were part of TGI Fridays’ ongoing growth strategy to adapt to changing market conditions and ensure long-term success. TriArtisan Capital Advisors, which purchased TGI Fridays in 2014, was set to exchange ownership for shares of Allegro as part of the initial public offering before the deal fell apart due to the pandemic’s impact on the industry.
As TGI Fridays prepares to merge with Hostmore and make its public debut on the London Stock Exchange, the restaurant chain aims to leverage the deal to expand globally and increase its presence in key markets. By retaining its headquarters in Dallas, Texas, and continuing under the leadership of CEO Weldon Spangler, TGI Fridays is poised for growth and transformation in the ever-evolving food service industry. With plans to close the deal in the third quarter pending regulatory approval, TGI Fridays looks forward to the next phase of its journey and the opportunities that lie ahead as a publicly-traded company on the London Stock Exchange.
