SOUTHFIELD— Diversified Restaurant Holdings, Inc., the owner, operator, and franchisor of the unique, full-service, ultra-casual restaurant and bar Bagger Dave’s Legendary Burgers Tavern (“Bagger Dave’s”) and a leading franchisee for Buffalo Wild Wings (BWW), has closed the acquisition of eight BWW’s in Indiana and Illinois for $14.7 million, which was announced on Aug. 22.
Terms of the transaction included an additional franchise agreement for a future location in Indiana.
T. Michael Ansley, President and CEO of DRH, said, “This transaction expands the scope of our operations, adds a number of new markets to our existing footprint and strategically positions us for future expansion throughout the Midwest. Our near-term focus will be to integrate the acquired restaurants and realize the opportunities to improve their operating and financial performance. Longer term, we look to leverage this acquisition by expanding our Bagger Dave’s concept within the same footprint, led by the anticipated opening of our first in Indiana by year’s end.”
The restaurants are located in Northwest Indiana and Southeast Illinois, and includes a location in Lincoln Park, Illinois; one of Chicago’s most prominent neighborhoods.
DRH operates 30 BWW restaurants: 14 in Michigan, eight in Florida, four in Illinois and four in Indiana. The Company has opened 16 new BWW restaurants in fulfillment of its 32-store Area Development Agreement with franchisor Buffalo Wild Wings, Inc. The remaining 16 restaurants under the ADA agreement, along with an additional franchise agreement in Indiana, suggest that the Company will operate 47 BWW’s by 2017.