Chanticleer Holdings, the Charlotte-based investment company that owns and operates Hooters restaurants outside the U.S., said Tuesday that it has finalized its purchase of Charlotte-based American Roadside Burgers.
The purchase of American Roadside represents a departure for Chanticleer, whose sole focus has been expanding the Hooters brand in other countries.
Under the deal, Chanticleer is purchasing the outstanding shares of American Roadside and issuing 740,000 shares of its stock to American Roadside shareholders. On Tuesday morning, shares of Chanticleer were trading at $4.88.
In August, Chanticleer announced that it planned to acquire the privately held hamburger chain that opened in 2006 and comprises five restaurants: two in Charlotte, in uptown and SouthPark; the original location in Smithtown, N.Y.; and one each in Columbia and Greenville, S.C.
Chanticleer said it plans to open more American Roadside locations in the U.S. and foreign markets.
Approvals are still needed before Tom Lewison, who serves as a director for Roadside Burgers, can join Chanticleer’s board. Lewison, former chief operating officer of Charlotte-based fried-chicken chain Bojangles’, is expected to help create strategies for Chanticleer and American Roadside.
According to Chanticleer, American Roadside gives Chanticleer, which has been suffering quarterly losses, another brand to introduce to other countries to increase revenue. Expenses associated with the Hooters in which Chanticleer has ownership have contributed to the losses. According to Chanticleer’s CEO, Mike Pruitt, it needs to roughly double its Hooters locations to overcome the costs of being public and reach profitability.
Each share issued to American Roadside shareholders also comes with the right to purchase another share of Chanticleer for $5. American Roadside Burgers has roughly 200 shareholders, owner Rich LaVecchia told the Observer in August.
The deal calls for LaVecchia to step down. Lewison is expected to help find a new CEO for American Roadside.