IHOP to Buy Applebee’s for $1.9 Billion
July 16, 2007
Applebee’s International, which recently settled a proxy fight with investment firm Breeden Capital Management, said Monday it agreed to be acquired by pancake restaurant chain IHOP Corporation for $25.50 per share, or $1.9 billion.
The offer represented a 4.6 premium to Applebee’s closing share price on Friday.
Applebee’s said in February it would explore strategic alternatives for the company, including a possible sale.
In April, it agreed to place Richard Breeden, the former chairman of the Securities and Exchange Commission who now leads Breeden Capital, and one of his allies on its board.
Mr. Breeden had been fiercely critical of Applebee’s management, calling the restaurant chain a “study in stagnation.”