Back Yard Burgers Announces Merger Closing
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LYNN TAKES OVER AT THE GRILL/ MEMPHIS, Tennessee (November 5, 2007) – Back Yard Burgers, Inc. (NASDAQ: BYBI) announced that its merger with BBAC, LLC and BBAC Merger Sub, Inc. is final effective today, according to Chairman of the Board Reid M. Zeising. In comments on the merger, Zeising said, “We’re very bullish on the growth prospects for this brand. We feel that we’re in the sweet spot of consumer macro trends with our freshly prepared signature foods that are charbroiled, not fried. We’re also a great value for consumers who are being financially stretched by today’s economic challenges. “We have a new management team, headed by CEO Stephen Lynn, that is deep, talented and experienced,” noted Zeising. “Stephen Lynn is a legend in the restaurant industry. His leadership at Sonic as Chairman is one of the great restaurant success stories of our time.” Stephen Lynn noted this his primary responsibility would be growing the brand by serving the needs of the franchise community. “Our entire team will be relentless in our focus to provide resources and programs to franchisees that drive traffic and sales,” said Lynn. “We believe that a large portion of our future growth will be from multi-unit operators who will appreciate our disciplined approach to improving unit level economics and boosting same store sales.” In addition to CEO Lynn and Chairman of the Board Zeising, Back Yard Burgers’ new management team includes Wallace Hite, Chief Operating Officer. Back Yard Burgers plans to relocate its headquarters from Memphis to Nashville over the next 90 days. C. Stephen Lynn previously served as Chairman of the Board for Sonic Corporation and Shoney’s, Inc. Under Lynn’s leadership, Sonic recorded 44 consecutive quarters of same store sales increases and achieved a compounded annual growth rate of over 20% per year during his tenure. Lynn was most recently Chairman of Cummings Signs, Inc. in Nashville. Wallace Hite was also part of the senior management team at Sonic. In addition, he has served in executive positions including CEO, President and COO with regional and national chain restaurant companies. BBAC, LLC acquired Back Yard Burgers in a transaction valued at approximately $38 million. Under the terms of the merger agreement, the holders of Back Yard Burgers common stock and preferred stock received $6.50 per share in cash for their shares at the close of business, Monday November 5, 2007. Back Yard Burgers operates and franchises 181 quick-service restaurants in 20 states, primarily in markets through the Southeast region of the United States. The restaurants specialize in charbroiled, freshly-prepared, great-tasting food. As its name implies, Back Yard Burgers strives to offer the same high-quality ingredients and special care typified by outdoor grilling in the backyard. Its menu features made-to-order gourmet Black Angus hamburgers and chicken sandwiches – charbroiled over an open flame, fresh salads, chili and other specialty items, including hand-dipped milkshakes, fresh-made lemonade and fresh-baked cobblers. |
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