Blimpie to Sell Chain to Investor Group
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Blimpie International Inc. announced plans to sell the No. 2 U.S. submarine-sandwich chain to a private investor group for $25.8 million in cash, to spur the brand’s development.
The investor group, headed by Blimpie sub-franchiser Jeffrey Endervelt, will buy the company’s 9.2 million outstanding shares for $2.80 each, an 87% premium to its last trading price of $1.50 when it was halted on the American Stock Exchange.
Blimpie’s management, which owns about 58% of the shares, has voted in favor of the agreement. Blimpie Chief Executive Tony Conza is part of the investor group and will remain with Blimpie as chairman emeritus.
Should Blimpie receive a more competitive offer and terminate the deal, it would have to pay a $1.3-million break-up fee plus expenses.
Blimpie has 2,000 franchises nationwide, second only to Subway, which is private.
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