Granite City’s Largest Shareholder Invests Another $6.5M
Granite City Food & Brewery, Ltd., said Monday that it has entered into a stock purchase agreement with its largest shareholder, through which the St. Louis Park-based restaurant chain will receive a $6.5 million investment.
The shareholder, Concept Development Partners, LLC (CDP), will receive 3.125 million shares of Granite City’s common stock. The transaction is expected to close by June 26.
Granite City has made a number of recent announcements regarding its growth—which stemmed in part from a $9 million capital infusion that the company received in May 2011 from CDP.
According to a report by the Star Tribune, CDP already has a 72 percent ownership stake prior to the investment announced Monday.
Granite City currently operates 27 restaurants under the Granite City banner, and it recently announced plans to open a new restaurant in Tennessee.
Granite City opened a restaurant in Michigan last month, according to the Star Tribune. The new cash infusion will likely help it open the planned Tennessee location, as well as a store in downtown Indianapolis, set to open around the first of next year, one in Cleveland, and other potential locations, the Minneapolis newspaper reported.
The company has also been buying up Cadillac Ranch All American Bar & Grill restaurants. It purchased its first Cadillac Ranch in November 2011 and has since bought five more.
Granite City CEO Rob Doran said in a Monday statement that CDP’s recently announced investment “will help to accelerate our growth going forward and we could not be more pleased.”
“Everyone within the Granite City organization has worked extremely hard over the past year,” Doran said. “We are pleased with the results we have achieved and are even more excited to see our partners at CDP demonstrating their confidence in us through this additional investment.”