Champps OKs $75m sale to executives, equity firm

Nation's Restaurant News, Jan 22, 2007

LITTLETON, COLO. -- Champps Entertainment Inc. has agreed to sell its 62-unit namesake chain to a management-led group for $75 million and the assumption of debt, which stood at $14.8 million as of October.

The buyers would include Champps chairman and chief executive Michael O'Donnell, chief financial officer David Womack, and a yet-to-be-formed affiliate of New York-based private-equity firm Kinderhook Industries LLC.

Champps said it would remain a public company after the divestiture and would use the proceeds to buy another business. It said its letter of intent with the O'Donnell group leaves it free to solicit other offers, though it would have to pay a penalty of up to $2 million if the deal isn't concluded.

Champps operates 49 of the casual-dining outlets and is franchisor or licensor of the other 13.