The parent company of the Dick’s Wings & Grill restaurant chain Monday said it acquired the WingHouse Bar & Grill restaurant concept for $18 million.
Jacksonville-based ARC Group Inc. said it is paying $12 million in cash and $6 million in stock to buy the company from Soaring Wings LLC.
WingHouse, founded a quarter-century ago in Largo, has 24 locations in Florida generating more than $60 million in annual revenue, ARC Group said.
ARC Group’s total revenue was $8.8 million in the first six months of this year.
Its Dick’s Wings chain has 23 restaurants in Florida and Georgia. ARC Group also owns a chain called Fat Patty’s with four locations in West Virginia and Kentucky.
“This acquisition is consistent with our strategy of acquiring restaurant chains for which we can leverage our franchising, marketing, operational, logistics and financial expertise to drive sales growth and profitability,” ARC Group CEO Seenu Kasturi said in a news release.
“This transaction should provide us with significant scale as we project ARC Group's combined annualized revenue will now exceed $70 million. Additionally, we expect this acquisition to immediately begin contributing to our operating cash flow,” he said.
ARC Group also has an agreement pending to buy the Tilted Kilt Eatery and Pub chain.