Bob Evans Farms Inc. announced that its Board of Directors has authorized the company to pursue a strategic transaction for a select portion of its restaurant properties. The decision follows the announcement in March 2015 that the company had retained J.P. Morgan to assist with an evaluation of strategic alternatives for the company's real estate.
The company said the transaction may take the form of either a sale-leaseback or a tax-free REIT conversion and spin-off. The decision as to which path to pursue will depend on a number of factors including, but not limited to: the performance of Bob Evans' business segments, and in particular the restaurant segment, market values for restaurant real estate, trading performance of publicly traded real estate companies, interest rates and U.S. economic conditions. The timing of a transaction remains subject to the Board's continued evaluation of these factors, and the Company cannot guarantee if and when a transaction will be undertaken.