GB Foods Reduces Shares for Acquisition of Timber Lodge
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IRVINE — Reflecting its falling stock, GB Foods Corp. said Tuesday that it cut the number of shares it will issue to acquire Timber Lodge Steakhouse Inc.
Irvine-based GB, parent of the Green Burrito Mexican fast-food chain, said it will issue 0.80 of a share of its stock for each share of Minneapolis-based Timber Lodge. Based on Tuesday’s $9-a-share closing price, GB will pay $26 million for the 16-unit steakhouse chain. When the deal was first announced last month, GB proposed paying 0.8276 of a share for each Timber Lodge share, or about $32 million. But GB’s stock price has fallen 11% since then.
The acquisition is subject to Timber Lodge’s purchasing from CKE Restaurants Inc. between 12 and 20 JB’s Restaurants for conversion to Timber Lodge Steakhouse restaurants. The deal is expected to be completed in April.
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