LENDALE, Calif. (AP) - IHOP Corporation says it is buying the operator of the Applebee's restaurant chain for about one-point-nine billion dollars in cash.
IHOP will pay 25 dollars, 50 cents a share for Applebee's, which operates a chain of fast-casual restaurants and has been under pressure from shareholders of late.
The two companies put the total value of the deal at two-point-one (b) billion dollars.
IHOP, best known for the blue roof of its pancake houses, says it plans to franchise out most of the Applebee's company-owned stores. Same-store sales are down more sharply this year for Applebee's company-owned outlets than for its franchise locations.
The deal is expected to close in the fourth quarter.
(Copyright 2007 by The Associated Press. All Rights Reserved.)