Diversified Gains new Wings, Backed by Citizens
Diversified Restaurant Holdings also owns Bagger Dave's Burger Tavern.
Diversified Restaurant Holdings is the new owner of 18 Buffalo Wild Wings restaurants in St. Louis and becomes the largest BWW franchisee, backed by $155 million in financing from Citizens Bank.
The Southfield, Michigan-based firm already owned 42 BWWs, and purchased the new stores from fellow franchisee, A Sure Wing.
Diversified is No. 76 on the Franchise Times Restaurant 200, ranking the largest U.S. restaurant franchisees, which will appear in our August issue. The ranking does not include the new restaurants.
Diversified, listed on Nasdaq under the BAGR symbol, is also the creator, developer and operator of Bagger Dave’s Burger Tavern. Bagger Dave’s has 26 locations, according to its website.
“In the restaurant business it’s grow or die. They need access to capital,” said Armando Pedroza, head of restaurant finance at Citizens Bank, about restaurant operators. He said Diversified is a long-time client. “We like the operator; we like management a lot.”
Citizens led $155 million in new funding for Diversified, to refinance existing debt and to fund the acquisition for $54 million. That includes a $120 million term loan, a $30 million development line of credit and a $5 million revolver for working capital.