Granite City Buys 7 Cadillac Ranch Eateries for $9M
Granite City Food & Brewery Limited announced Friday that it has agreed to pay $9 million to acquire the assets of seven Cadillac Ranch All American Bar & Grill restaurants.
The St. Louis Park-based restaurant operator has completed the acquisition of one of the locations-the Cadillac Ranch at the Mall of America in Bloomington-for $1.4 million.
The company agreed to buy the remaining six restaurants but hasn't closed on the sales yet. The deal includes one restaurant in operation and another under construction in Indianapolis; and restaurants in Pittsburgh; Miami; Oxon Hill, Maryland; and Hallandale Beach, Florida.
Granite City said it expects to complete the remaining acquisitions before the end of 2011. The restaurants will continue to operate under the Cadillac Ranch name.
“One of our goals has been to use the Granite City engine as a platform to grow into a broader and more dynamic restaurant company,” Granite City CEO Rob Doran said in a statement. “Cadillac Ranch's distinctive characteristics and unique melding of entertainment and casual dining excite us.”
Granite City has been ramping up efforts to attract customers and boost sales. Last month, the company announced plans to remodel eight of its restaurants to increase seating capacity in order to reduce wait times. The upgrades are being funded in part by equity the company raised in May-which included a $9 million capital infusion from Dallas-based Concept Development Partners and $10 million in financing from Cincinnati-based Fifth Third Bank.
The restaurants operated by Columbus, Ohio-based Cadillac Ranch Group serve classic American fare, much like Granite City. The company opened its Mall of America location in fall 2010.
Granite City operates about 26 restaurants in 11 states. It is one of the 75 largest public companies in Minnesota based on revenue, which totaled $89.3 million in 2010.