COLUMBUS Ohio Shareholders of Max & Erma’s Restaurants have approved a $10.2 million acquisition deal that takes the casual-dining company private, a spokesman for the company said Tuesday.
G&R Acquisition Inc., led by Pittsburgh restaurateur Gary Reinert Sr., will buy all of Max & Erma's 2.6 million outstanding shares for $10.2 million, or about $4 a share. The cash infusion will allow the 106-unit chain, founded in 1972, to complete its remodeling program and resume expansion, said Robin Yocum, a spokesman for Max & Erma's.
Max & Erma's first announced the deal with G&R in April.
The corporate headquarters will remain in Columbus and executives will stay on after the transaction closes, Yocum added. The company also expects to expand primarily through franchising and has one new unit under construction in Florida. Currently, Max & Erma’s owns 79 of its 106 units, which are located in 13 states.
Sales have dramatically increased at newly remodeled restaurants, Yocum said. Executives hope to turn around the ailing chain, which posted a net loss of $3.5 million on $174.9 million in revenue in the fiscal year ended Oct. 29, 2007.