Private-equity group buys Bob Evans Restaurants for $565M

January 24, 2017

Bob Evans Farms Inc. has chosen to stick with the packaged foods business. The New Albany, Ohio-based company on Tuesday said that it has a deal to sell Bob Evans Restaurants to Golden Gate Capital for $565 million.

The deal comes as the 523-unit family dining chain has struggled and shareholders have pressured the company to spin off its profitable packaged foods division, BEF Foods.

Instead of spinning it off, Bob Evans is selling the restaurants and committing to the packaged foods division, which sells sausage and side dishes at grocery stores. Along with the sale of the restaurants, BEF