Bob Evans Seeks to Monetize Properties

By Josh Beckerman 

Bob Evans Farms Inc., which has faced pressure from activist investorSandell Asset Management to sell the buildings that house its restaurants and lease them back, is pursuing "monetization" of its headquarters site and two manufacturing facilities.

The restaurant operator and packaged-foods maker said it has hired CBRE Group Inc. for those plans, while it is "actively evaluating strategic alternatives" for its restaurant properties.

Bob Evans intends to use proceeds from one or more sale-leaseback transactions to repurchase stock. The company is pursuing potential sale-leasebacks for its New Albany, Ohio, headquarters, and production sites in Lima, Ohio, and Sulphur Springs, Texas.

Last month, Bob Evans said it planned to close 20 underperforming restaurants. As of Jan. 23, Bob Evans owned and operated 564 restaurants in the U.S.

Some investors have argued in recent years that some of America's most iconic brands, including McDonald's Corp., ought to sell or spin off their real estate holdings.

Late last year, Darden Restaurants Inc. said it would explore options for monetizing its real-estate portfolio, which includes some 1,200 restaurants such as Olive Garden and Capital Grille.

Red Lobster underwent a $1.5 billion sale-leaseback last year in connection with Golden Gate Capital's purchase of the chain from Darden.

Write to Josh Beckerman at [e-mail]

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