Champps Entertainment postpones completion of sale to Fox & Hound

By Lisa Kerner

Charlotte, N.C., Sept. 24 - Champps Entertainment, Inc. said it agreed to give F&H Acquisition Corp. and its equity sponsors Newcastle Partners LP, Newcastle Special Opportunity Fund III, LP and Steel Partners II, LP more time to complete the financing of F&H's proposed acquisition of Champps.

F&H is the holding company for Fox & Hound Restaurant Group.

In July, F&H agreed to buy Champps for $5.60 per share in a deal valued at about $74.8 million, according to a previous news report.

Champps stockholders are expected to vote on the transaction at a special meeting on Friday. The transaction, first expected to close on Oct. 1, will now close by Oct. 22, the company said in a statement released on Monday.

For its part, F&H agreed to eliminate certain conditions to its obligation to complete the transaction. In addition, the equity sponsors agreed to provide up to $35 million to facilitate financing. If the transaction does not close on or before Oct. 22, the equity sponsors will pay $35 million to Champps as damages.

Champps, based in Littleton, Colo., owns and operates 48 restaurants and franchises/licenses 13 restaurants in 21 states.

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