By JD Malone, The Columbus Dispatch
COLUMBUS – Like one of its iconic biscuits, Bob Evans Farms has been split in two.
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The New Albany-based company sold its restaurant division, which runs 523 stores in 18 states, to private equity firm Golden Gate Capital for $565 million. Bob Evans Farms packaged foods division, which makes mashed potatoes, sausage and other side dishes, will continue as a stand-alone, publicly-traded company.
Both companies will remain in New Albany at the recently built headquarters.
“This is really a great day,” said Saed Mohseni, Bob Evans CEO, who will remain chief executive of the restaurant company. “We have had a lot of conversations. We looked at many, many options. The conclusion was that both businesses were better off (split up) due to where they are in their life cycle.”
The restaurants continue to shed sales as a slide in customer traffic and profitability has plagued the chain for years. The food division is on a different path though. Bob Evans’ refrigerated side dishes, sold in grocery stores, are the national market leader and double-digit sales growth has been the norm of late.
Analysts have speculated about Bob Evans two divisions for a long time, most believed the company would sell or spin off the packaged foods to focus on the restaurants.