IRVING, Texas, May 07, 2018 (GLOBE NEWSWIRE) -- Del Frisco’s Restaurant Group, Inc. (NASDAQ:DFRG) today announced that it has entered into a definitive agreement to acquire Barteca Restaurant Group for $325 million in cash.

Barteca consists of two concepts, Barcelona Wine Bar (“Barcelona”) and bartaco, each with a unique vibe, food, drinks, and design. With 31 restaurants operating across 10 states and Washington D.C., the growth of Barcelona and bartaco has been fueled by a relentless focus on the guest experience. The brands deliver on more than just quality food and drinks—the atmosphere in each restaurant is fun, familiar, and full of energy.

• Barcelona, the largest Spanish restaurant concept in the U.S., with 15 restaurants and three under development, serves an ever-changing selection of tapas, using both local and seasonal ingredients as well as specialties from Spain and the Mediterranean. The award-winning wine list of 400 Spanish and South American wines is one of the largest programs in the country. Barcelona is inspired by the culture of Spain and its tapas bars. We estimate the market potential of Barcelona is between 50 and 100 restaurants domestically.

• Bartaco, with 16 locations and four under development, combines fresh, upscale street food with a coastal vibe in a laid-back environment. Inspired by a healthy, outdoor lifestyle, the menu takes inspiration from a broad palate of bold flavors from the Mediterranean, Asia, and beyond. The award-winning cocktails are made from artisanal spirits and freshly-squeezed juices. We estimate the market potential of bartaco is between 200 and 300 restaurants domestically.

“We believe Barteca’s innovative and ‘best in class’ concepts are highly complementary and will provide Del Frisco’s portfolio with significant growth and development opportunities. They will provide opportunities to enable us to capture market share in the experiential dining segments, while mitigating the risk of seasonality and economic downturns to our current restaurant portfolio,” said Norman Abdallah, Chief Executive Officer of Del Frisco’s Restaurant Group, Inc. “Similar to Del Frisco’s own vision and mission, Barteca’s founders Andrew Pforzheimer and Sasa Mahr-Batuz created Barcelona and bartaco to celebrate life in restaurants through great food, wine and hospitality. As a result, their award-winning concepts have become leading ‘experienced-based’ lifestyle brands that provide them competitive advantages in the marketplace. These include connectivity beyond the four-walls of the restaurants, culture and brand transcending food, and powerful ‘halos’ that drive appeal and loyalty. We are thrilled to be welcoming Barteca to our family.”

Del Frisco’s Board of Directors has unanimously approved the transaction, which is expected to be completed by the end of Del Frisco’s second quarter, subject to receipt of U.S. antitrust clearance and other customary closing conditions. The proposed transaction does not require approval by Del Frisco’s shareholders. Post-acquisition, Barteca will continue to be led by Jeff Carcara, its current Chief Executive Officer, who will now report up to Norman Abdallah, Chief Executive Officer of Del Frisco’s. Del Frisco’s is well-positioned to manage additional brands and realize synergies due to its dedicated Brand structure which will help ensure a smooth transition.

“We have tremendous brand pride across Barcelona and bartaco, the excitement about our growth and potential is palpable in both our new and existing restaurants,” said Jeff Carcara, Chief Executive Officer of Barteca Restaurant Group. “Our focus has and always will be creating truly memorable experiences for our guests—and really empowering our teams to walk the walk, not just talk the talk. I believe Norman and the team at DFRG share in the vision for what’s possible in terms of our evolution. There is strength in numbers and I am excited to see what more we can accomplish together.”

For 2017, Barteca generated $127.9 million in net sales and $31.7 million in Restaurant-Level EBITDA, representing a 24.8% margin.

• Barcelona generated $60.2 million in net sales, including a 1.9% increase in comparable restaurant sales, and Restaurant-Level EBITDA of $14.2 million, representing a 23.6% margin. The average unit volume was $4.7 million and average check was approximately $35. The current sales to investment ratio is 2.3x and cash on cash return is 57%, which is among the highest in the industry.
• bartaco generated $67.1 million in net sales, including a 7.3% increase in comparable restaurant sales, and a restaurant-level EBITDA of $17.5 million, representing a 26.1% margin. The average unit volume was $5.6 million and average check was approximately $22. The current sales to investment ratio is 3.0x and the cash on cash return is 87%, which is among the highest in the industry.

For the first quarter ended April 3, 2018, Barcelona generated comparable restaurant sales of 1.7% while bartaco generated comparable restaurant sales of 2.6%.

“This transaction directly aligns with the long-term strategy we established for Del Frisco’s when I joined the Board of Directors in 2015,” said Ian Carter, Chairman of Del Frisco’s Restaurant Group, Inc. “Barcelona and bartaco are the perfect additions to the Del Frisco’s portfolio, and are well-positioned to deliver a long-term positive impact on our team, guests and shareholders. On behalf of the Board, I want to welcome Jeff and the entire Barteca team to the Del Frisco’s family. We look forward to a bright future together.”

Piper Jaffray is acting as exclusive financial advisor to Del Frisco’s and its Board of Directors and Skadden, Arps, Slate, Meagher & Flom LLP is acting as legal advisor. Kirkland & Ellis LLP is acting as legal advisor to Barteca. Barteca is majority owned by investment funds managed by Rosser Capital Partners and General Atlantic, LLC. JPMorgan Chase and Citizens Financial Group are providing committed financing for the transaction.

About Del Frisco’s Restaurant Group, Inc.

Based in Irving, Texas, near Dallas, Del Frisco's Restaurant Group, Inc. is a collection of 53 restaurants across 23 states and Washington, D.C., including Del Frisco's Double Eagle Steakhouse, Del Frisco's Grille, and Sullivan's Steakhouse. Del Frisco's Double Eagle Steakhouse serves up flawless cuisine that's bold and delicious, an extensive award-winning wine list and a level of service that reminds guests that they're the boss. Del Frisco's Grille is modern, inviting, stylish and fun, taking the classic bar and grill to new heights, and drawing inspiration from bold flavors and market-fresh ingredients. Sullivan's Steakhouse is a great neighborhood place for a big night out on the town - with outstanding food, hand-shaken martinis, an award winning wine list, and live entertainment all under one roof.

For further information about our restaurants, to make reservations, or to purchase gift cards, please visit: www.DelFriscos.com, www.DelFriscosGrille.com, and www.SullivansSteakhouse.com. For more information about Del Frisco's Restaurant Group, Inc., please visit www.DFRG.com.

About Barteca Restaurant Group
Barteca creates restaurants where great food and attentive service are fun, stylish and accessible. Barcelona, the largest Spanish restaurant group in the U.S. with 15 locations, serves tapas both simple and elegant, using the best seasonal picks from local markets and unusual specialties from Spain and the Mediterranean. Barcelona also offers an extensive selection of wines from Spain and South America featuring over 40 wines by the glass.

Inspired by a healthy, outdoor lifestyle, bartaco combines fresh, upscale street food with a coastal vibe in a relaxed environment. The cuisine is rooted in tradition and pulls from a broad palate of bold flavors from the Caribbean, Asia and beaches everywhere. The menu features award-winning cocktails made with artisanal spirits and freshly-squeezed juices. bartaco currently has 16 locations across the U.S.