The massive conglomerate Yum Brands announced Jan. 6 its $375 million acquisition of The Habit Grill, which was grown by a couple of surfers from Santa Barbara.
Habit joins a bag full of Yum Brands fast-food businesses, including Taco Bell, Pizza Hut and Kentucky Fried Chicken.
“We are excited about the growth aspects of the deal,” said Yum Brands CEO David Gibbs. “More than 40 percent of the sales come from outside of burgers,” he told Yahoo Finance. “It has a nice business in grilled chicken sandwiches, sushi grade tuna sandwiches and veggie burgers and salads.”
Reportedly, the purchase price of $14 a share represents a 33 percent premium over Habit’s Jan. 3 closing price. Yum Brands said it will fund the transaction using cash on hand and available borrowing capacity under its credit facilities.
Brothers Brent and Bruce Reichard bought The Habit company in 1980 and sold it to the Irvine-based KarpReilly company. As they did when they sold the company, the brothers say they will still maintain ownership of their eight Santa Barbara-area hamburger stands, which were not acquired by KarpReilly in the 2007 deal.
Posted Jan. 6, 2019.