DineEquity Announces the Sale of 39 Applebee's Company-Operated Restaurants in Virginia for Net Proceeds of $25M

DineEquity, Inc. DIN today announced that it has entered into an asset purchase agreement with Potomac Family Dining Group, LLC for the sale of 39 Applebee's company-operated restaurants located in Virginia. The agreement does not contain financing contingencies, but closing is subject to regulatory processes related to liquor license transfers and other customary closing conditions. The transaction is expected to result in net proceeds after taxes of approximately $25 million and reduce DineEquity's sale-leaseback related financing obligations by approximately $40 million. The Company expects to pay approximately $6 million related to the settlement of net working capital liabilities and deal costs. Additionally, the sale of these Applebee's company-operated restaurants will result in approximately $1.6 million in annualized general and administrative savings. The Company anticipates closing the transaction in the third quarter of 2012.