Cheesecake Factory upsizes revolver to $400 million for acquisition

By Wendy Van Sickle

Columbus, Ohio, July 31 – Cheesecake Factory Inc. closed on an upsized $400 million revolving credit facility to support its acquisition of Fox Restaurant Concepts and the remaining interest in Fox’s North Italia concept, according to a news release issued on Wednesday.

Cheesecake Factory will pay $308 million in cash at closing of the transactions, and an additional $45 million will be due ratably over the next four years.

The company invested $88 million in the North Italia and Flower Child concepts over the last three years in anticipation of the purchase. The cash due at closing will come from a draw on the revolver and cash on hand.

The Fox transaction also includes an earn-out provision based on the financial performance of the FRC brands outside of North Italia and Flower Child.

Cheesecake Factory is a Calabasas Hills, Calif.-based operator of restaurants. North Italia has 20 upscale, casual Italian restaurants in nine states and Washington D.C. Fox operates 45 restaurants across seven states and Washington D.C.

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