Southfield-based Diversified Restaurant Holdings Inc. has become the largest Buffalo Wild Wings franchisee with the acquisition of 18 restaurants in the St. Louis area for $54 million.
Southfield-based Citizens Bank provided $155 million in new financing to Diversified Restaurant Holdings Inc., allowing the company to acquire the restaurants.
“Citizens was able to structure financing that helped us meet our goals; maintaining liquidity and access to capital for continued organic growth of our two concepts,” says David Burke, CFO and treasurer of Diversified Restaurant Holdings.
The financing also allowed Diversified Restaurant Holdings to refinance existing debt. In total, the financing included a $120 million term loan, an unfunded $30 million development line of credit to support store growth, and an unfunded $5 million revolver to support working capital needs.
Diversified Restaurant Holdings operates 60 Buffalo Wild Wings restaurants in Michigan, Indiana, Illinois, and Florida. The company also owns and operates Bagger Dave’s Burger Tavern, which offer burgers, fries, craft beers, and other selections. There are 26 company-owned Bagger Dave’s restaurants in Michigan and Indiana. â€‹