Down On The Farm

Bob Evans Farms Inc. (Columbus, Ohio) announced that it has signed a definitive agreement to acquire SWH Corp. (Mimi's Café) for $182 million in cash, including the assumption of about $78.7 million in outstanding debt. The acquisition, which is contingent upon customary regulatory approvals, is expected to be completed in July 2004.

Mimi's, based in Tustin, California, operates 81 company-owned Mimi's Café restaurants in 10 states, with most of the locations in California and other western states. The restaurants are open for breakfast, lunch and dinner, and offer a variety of freshly prepared food in an atmosphere reminiscent of a New Orleans café or a European bistro. Total revenues for the company were $240.5 million for 2003 and average unit sales were $3.3 million.

Stewart K. Owens, chairman of the board and ceo of Bob Evans Farms says, “We are delighted to announce our proposed acquisition of Mimi's Café. This represents a unique opportunity for Bob Evans Farms to add a complementary growth vehicle in the casual segment of the restaurant industry. Mimi's combination of a family environment, exceptional food, and operations across all three day parts makes it an excellent fit for us, and we believe its unit-level economics are attractive. We expect this acquisition to have a neutral to slightly positive effect on our earnings per share in fiscal 2005, with greater contributions expected in subsequent years.”

According to Owens, Mimi's will operate as a separate subsidiary led by its current management team.

Bob Evans Farms owns and operates 561 full-service, family restaurants in 21 states, primarily located in the Midwest, mid-Atlantic and Southeast regions of the U.S.