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Diversified Gains new Wings, Backed by Citizens


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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.

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The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Laura MichaelsLaura Michaels is editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
 
Beth EwenBeth Ewen is senior editor of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is restaurants editor at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 

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