Bob Evans Restaurants

Bob Evans Restaurants
Private
Industry Restaurant
Founded 1948
Founder Bob Evans
Headquarters New Albany, Ohio, U.S.
Key people
 Saed Mohseni, President
Revenue Decrease $1.669 billion (FY 2012)[1]
Increase $107 million (FY 2012)[1]
Increase $72.85 million (FY 2012)[1]
Total assets Decrease $1.066 billion (FY 2012)[1]
Total equity Decrease $657 million (FY 2012)[1]
Owner Golden Gate Capital
Number of employees
 46,818 (Apr 2012)[1]
Website bobevans.com

Bob Evans Restaurants is an American national chain of restaurants owned by Golden Gate Capital and based in New Albany, Ohio. After its founding in 1948 by Bob Evans (1918–2007) the restaurant chain evolved into a company with the corporate brand name Bob Evans Farms, Inc. (BEF) and eventually set up a separate food division to handle the sale of its products in other markets. The company made several major acquisitions, including Owens Country Sausage in 1987, and was split in January 2017 with the sale of its restaurant division to an affiliate of Golden Gate Capital. BEF Foods remained independently owned until September 2017 when it was sold to Post Holdings.

Overview

A typical Bob Evans restaurant

The Bob Evans family restaurant chain includes over 500 locations in 18 states, mostly in the Mid-Atlantic, Midwestern, and Southeastern portion of the United States.[2] The locations are all corporately owned and none of them are franchised.

The restaurants feature a country-living theme with a close connection to farms. Breakfast is served from open to close, and most locations sell baked goods, snacks, and small gift items. The company formerly offered pork products and refrigerated side dishes in the retail grocery and food service markets. The distribution of these products, sold under the Bob Evans and Owens Country Sausage brand names, was independent of the restaurant division.

History

The Bob Evans Farm in Rio Grande, Ohio, with a Bob Evans restaurant (left).

Bob Evans Restaurants was founded in 1948 by Bob Evans, when he began processing and packaging sausage for his small diner located in Gallipolis, Ohio.[3] Early operations were based out of his southeastern Ohio farm in Rio Grande.[3] As the reputation of his sausage grew, so did the number of guests that visited his farm to buy it in bulk.[3] Friends and family partnered together to establish Bob Evans Farms, Inc., in 1953.[3] The increased traffic led him to build the first company restaurant at the farm in 1962 that was named "The Sausage Shop".[3]

After running into a capacity issue fulfilling large orders, Bob Evans contracted with his cousin Tim Evans of the Evans Packing Company to package Bob Evans Sausage products. Another relative, Dan Evans, served as CEO until his retirement in 2000.[4]

Bob Evans outlet in Lynchburg, Virginia.

The company acquired Texas-based Owens Country Sausage in 1987. Owing to trademark issues, the company branded its otherwise identical restaurants in Texas as Owens Restaurants. By January 2006, all Owens restaurants had been closed.[5]

The company operated a Mexican-themed restaurant called Cantina del Rio in the mid-1990s, a move which founder Bob Evans called "a disaster" in 2003.[6]

The Evans family controlled daily operations of the company until 2000 when Dan Evans retired as CEO. After Dan's retirement, Stewart K. Owens (a former officer of the Owens Country Sausage company and later president of BOBE) assumed control of Bob Evans Farms Inc. as CEO. In 2001, he became chairman of the board. Company profits faltered under Owens' tenure. In August 2005, after corporate profits had dropped in eight of the previous nine quarters, Owens announced his resignation. After operating for several months under interim CEO Larry Corbin, the company hired Steven Davis, former president of Long John Silver's, as CEO in May 2006.

In July 2004, Bob Evans Farms purchased the California-based Mimi's Cafe restaurant chain (operating under SWH Corporation) for $182 million.[7][8] Mimi's Cafe had 144 locations throughout the U.S. at the time. They featured casual dining and American food with a French emphasis and decorative elements. Bob Evans Farms sold Mimi's Cafe to the U.S. branch of Groupe Le Duff in 2013.

On August 17, 2009, Bob Evans opened a prototype restaurant in Xenia, Ohio.[9] This restaurant had a more farm-like feel, resembling the original Bob Evans farm concept.

CEO Steven Davis resigned in December 2014.[10]

As of Q4 2015, the chain announced its intention to sell 145 properties to Mesirow Financial Holdings Inc. for a total price of $200 million. The net proceeds are expected to be approximately $165 million and the deal is expected to close in Q2 2016.[11]

Separation from and dissolution of Bob Evans Farms

On January 24, 2017, Bob Evans Farms announced the sale of its restaurants business unit to the private equity company Golden Gate Capital (owners of Red Lobster and California Pizza Kitchen) for US$565 million plus the assumption of up to US$50 million in liabilities. In addition to the restaurants, Golden Gate Capital will also take ownership of the Bob Evans Farm in Bidwell, Ohio, near Rio Grande. Once the sale is finalized, Bob Evans Farms CEO Saed Mohseni will move to Golden Gate Capital to serve as President of the Bob Evans restaurant division. BFF Foods President Mike Townsley will become President and CEO of the new Bob Evans Farms, which would remain a public company and will focus on grocery products such as breakfast sausage and refrigerated side dishes. Net proceeds from the sale to Bob Evans Farms are expected to be between $475 million to $485 million.[12][13][13][14]

On the same day, Bob Evans Farms entered into an agreement to acquire the Pineland Farms Potato Co. of Mars Hill, Maine, for US$115 million. Pineland Farms is a value-added potato processor, including a 900-acre (360 ha) potato farm, serving the retail and food service markets; they also operate a cheese processing business.[12][13] Both the sale of the restaurant division to Golden Gate Capital and the purchase of Pineland Farms Potato Company closed on March 1, 2017.[15]

On September 19, 2017, Bob Evans Farms announced that it would be acquired by Post Holdings.[16] Post Holdings also announced that upon completion of the acquisition, they would combine their existing Michael Foods refrigerated retail business with that of Bob Evans Farms. This unit would initially operate under the Bob Evans Farms name (before eventually being changed to Post Refrigerated Retail) and would be led by the then-current Bob Evans Farms President and CEO, Mike Townsley. Bob Evans Farms foodservice business would be moved to Michael Foods, will be led by current division President Jim Dwyer.[17] The sale of Bob Evans Farms to Post Holdings closed on January 12, 2018, at which point Bob Evans Farms stock was delisted from the NASDAQ Global Select Market and the company ceased to exist as an independent organization.[18][19]

See also

References

  1. 1 2 3 4 5 6 "Bob Evans Farms, Inc., Form 10-K, Annual Report, Filing Date Jun 21, 2012" (PDF). secdatabase.com. Retrieved February 13, 2013.
  2. ↑ "Our Company – Who We Are". Bob Evans Farms. Retrieved March 27, 2018.
  3. 1 2 3 4 5 "Our Company – History and Legacy". Bob Evans Farms. Retrieved March 27, 2018.
  4. ↑ Lafferty, Mike (June 21, 2007). "Bob Evans Dies at 89". The Columbus Dispatch. Retrieved 21 July 2010.
  5. ↑ Bob Evans Farms Announces Closing of Eight Remaining Owens Restaurants, press release
  6. ↑ "Bob Evans Obituary". Legacy.com. Associated Press. June 21, 2007. Retrieved 21 July 2010.
  7. ↑ FundingUniverse – Company Histories – SWH Corporation. Retrieved 2 November 2008.
  8. ↑ "Mimi's changes recipe a little under new owner; It adds some upscale entrees while preserving comfort-food favorites".
  9. ↑ "Bob Evans Press Release" (PDF). Archived from the original (PDF) on January 7, 2010.
  10. ↑ Lublin, Joann. "Bob Evans's CEO Resigns as Board Revamps Firm". The Wall Street Journal. Retrieved 16 December 2014.
  11. ↑ "Bob Evans Farms Agrees to $200 Million Sale/Leaseback of 145 Restaurants – CoStar Group". costar.com. Retrieved 14 January 2016.
  12. 1 2 Author unknown (January 24, 2017). Press Release: Sale of Bob Evans Restaurants and the Acquisition of Pineland Farms Potato Company Marks the Beginning of a New Era at Bob Evans Farms, Inc. The Wall Street Journal, January 24, 2017. "The Wall Street Journal news department was not involved in the creation of this content." Retrieved from https://www.wsj.com/articles/PR-CO-20170124-911070.
  13. 1 2 3 Woodyard, Chris (January 24, 2017). Bob Evans shares rocket on sale of restaurants division. USA Today, January 24, 2017. Retrieved 25 January 2017 from https://www.usatoday.com/story/money/business/2017/01/24/bob-evans-farms-sells-restaurants-they-go-private/97014626/.
  14. ↑ Bob Evans CEO: Farm fest still on. No restaurants closing.
  15. ↑ Sale of Bob Evans Restaurants to Golden Gate Capital complete.
  16. ↑ Bob Evans Farms Sold To Post Holdings for $1.5 Billion
  17. ↑ Post Holdings to Acquire Bob Evans Farms for $77.00 per Share
  18. ↑ Post Holdings and Bob Evans Farms Announce Expiration of HSR Waiting Period in Connection with Proposed Acquisition of Bob Evans Farms
  19. ↑ Post Holdings to Explore Strategic Alternatives for Private Brands Businesses; Acquisition of Bob Evans Farms Expected to Close on January 12; Announces New Leadership Appointments
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