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Gen Restaurant Group mulls $100M offer for its BBQ chain
['Aneurin Canham-Clyne', 'Mon', 'August', 'At Pm Gmt', 'Min Read']
Yahoo Finance
Dive Brief:Gen Restaurant Group has received a letter of intent from a multi-concept restaurant operator interested in buying Gen Korean BBQ, a 59-unit casual dining chain, for $100 million, according to a Monday press release.
Gen Restaurant Group would maintain control of its growing consumer packaged goods business if it agreed to the sale proposal in the letter.
Dive Insight:The deal would maximize the value of Gen's restaurant business, according to the press release, while helping the brand's parent company strengthen its balance sheet by offloading long-term liability attached to its restaurant division.
Selling off its restaurant business would allow the company to focus on its CPG business.
"CPG growth is exponential; restaurant growth requires heavy capital investment in every new location, with significant risk," Kim said.