GEN Restaurant Group, Inc. (Nasdaq: GENK) has signed a binding letter of intent to sell operations at 47 U.S. restaurants to Chubby Group for $100 million, according to a company statement. The board approved the transaction by unanimous consent, with both parties targeting a close within 30 days.
Under the terms, GEN will retain the GEN brand, its consumer packaged goods business, and approximately three restaurants for training and research purposes. The company expects the transaction to reduce its approximately $160 million in lease liabilities and eliminate its outstanding debt. GEN will receive a term note receivable as part of the deal and may use remaining proceeds for dividends, share repurchases, or reinvestment.