Bob Evans Farms, Inc. is selling its restaurant business to Golden Gate Capital for $565 million while acquiring Pineland Farms Potato Company for $115 million, a strategic move aimed at enhancing value for its food segment.

Target Information

Bob Evans Farms, Inc. is a leading player in the U.S. food industry, operating full-service restaurants and producing a variety of refrigerated and frozen food items through its BEF Foods segment. The company operates 522 family restaurants primarily located in the Midwest, mid-Atlantic, and Southeast regions of the United States. BEF Foods holds a dominant position in the market for refrigerated dinner side dishes and pork sausage products, cultivating a strong brand presence and customer loyalty.

Recently, Bob Evans Farms announced a strategic transformation aimed at enhancing shareholder value through two major transactions: the sale of Bob Evans Restaurants and the acquisition of Pineland Farms Potato Company (PFPC). These actions signify a shift in focus towards the growing and more profitable food segment of BEF Foods while fortifying its operational capabilities through the acquisition of PFPC.

Industry Overview

The U.S. food service industry, valued at approximately $899 billion in 2021, is characterized by its competitive landscape, with a mix of traditional restaurants and fast-casual dining establishments. The sector ha