Press Release

by / Tuesday, 13 August 2013 / Published in Transactions

Lincoln Partners advises Bob Evans Farms, Inc.’s acquisition of Mimi's Cafe

Bob Evans Farms, Inc. (NASDAQ: BOBE) today announced that it has signed a definitive agreement to acquire SWH Corporation (d/b/a Mimi's Cafe) for $182 million in cash, including the assumption of approximately $78.7 million of outstanding indebtedness. The acquisition, which is contingent upon customary regulatory approvals, is expected to be completed in July 2004. Lincoln Partners assisted in the negotiations and acted as financial advisor to Bob Evans Farms in this transaction.

Mimi's, based in Tustin, California, operates 81 company-owned Mimi's Cafe restaurants in 10 states, with most of the locations in California and other western states. The restaurants are open for breakfast, lunch and dinner, and offer a wide variety of freshly prepared, high-quality food in an atmosphere reminiscent of a New Orleans cafe or a European bistro. Mimi's serves beer and wine, and operates in the casual segment of the restaurant industry, with a per-person check average of approximately $9.50. Total revenues for the company were $240.5 million for 2003 and average unit sales were $3.3 million.

Stewart K. Owens, chairman of the board and chief executive officer of Bob Evans Farms, said, "We are delighted to announce our proposed acquisition of Mimi's Cafe. This represents a unique opportunity for Bob Evans Farms to add a complementary growth vehicle in the casual segment of the restaurant industry. Mimi's combination of a family environment, exceptional food, and operations across all three day parts makes it an excellent fit for us, and we believe its unit-level economics are attractive. We expect this acquisition to have a neutral to slightly positive effect on our earnings per share in fiscal 2005, with greater contributions expected in subsequent years."

Owens continued, "Mimi's will operate as a separate subsidiary led by its strong existing management team, including Chairman Thomas M. Simms and President and Chief Executive Officer Russell W. Bendel. We believe both Mimi's and Bob Evans will benefit in a variety of ways from the combined companies' broader capabilities. While we expect to eventually identify some synergies, none were assumed in negotiating the terms of this transaction. Mimi's unit growth rate of 15 to 20 percent should increase the Bob Evans' overall projected growth rate from current levels. Mimi's also neatly complements the geographical locations, seasonality and customer demographics of the Bob Evans concept."

About Bob Evans Farms, Inc.

Bob Evans Farms, Inc. owns and operates 561 full-service, family restaurants in 21 states. Bob Evans restaurants are primarily located in the Midwest, mid-Atlantic and Southeast regions of the United States, while Owens restaurants operate in Texas. The company is also a leading producer and distributor of pork sausage and a variety of complementary home-style convenience foods under the Bob Evans and Owens brand names.

About Lincoln Partners LLC

Lincoln Partners is the second largest investment bank headquartered in Chicago, specializing in middle-market mergers and acquisitions, and private capital raising for global clients. The firm's fundamental commitment is to complete assignments on the best terms for clients committing hands-on attention, ingenuity and significant expertise to every transaction.