Per the agreement, subject to board and regulatory agency approvals, Tom Lewison, a current director of ARB, will join the HOTR’s board of directors to provide strategic direction for the companies.
While the acquisition is an obvious steer away from HOTR’s focus on hot wings with the Hooters® brand, it provides the company with a fresh opportunity in the restaurant industry.
“This acquisition of an exciting chain of restaurants is our first departure from our ongoing development of Hooters restaurants in foreign countries. We believe that acquiring American Roadside at this stage of their development presents Chanticleer a strategic opportunity to participate in a high-growth space with an already established brand,” HOTR chairman and CEO Mike Pruitt stated in the press release. “We plan to continue to expand the American Roadside chain as future opportunities occur as well as continue on our development of Hooters restaurants internationally. Additionally, the opportunity to work with one of the better restaurant executives in the country, Tom Lewison, is an extremely important step in our corporate transformation.”
The 10-year old ARB initially started as one location in NY and has expanded to two more locations in Charlotte, one location in Columbia, S.C., and one location in Greenville, S.C. The chain’s menu features salads; customized burgers made from beef, turkey or veggies; milk shakes; and a large selection of various sandwiches, beers and wine.
HOTR issued 740,000 HOTR Units to the current shareholders of ARB, each unit consisting of one common stock and one five-year, $5 warrant, exercisable after 12.
For further information, please visit www.chanticleerholdings.com
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