SAN FRANCISCO (Thomson Financial) - IHOP Corp. said Wednesday it plans to franchise a 'substantial majority' of Applebee's International Inc.'s company-operated restaurants as part of a realignment of its organizational structure.
Glendale, Calif.-based IHOP said it plans to make the changes following the completion of its $2.1 billion acquisition of Applebee's, which is expected to close by Nov. 29, pending certain conditions.
IHOP also said that a total of eight Applebee's executives, including Chief Executive Dave Goebel and Chief Financial Officer Steve Lumpkin, will leave the company at the close of the transaction. IHOP said it plans to streamline Applebee's leadership to 10 members from the current 21 as it remakes the unit into a nearly 100% franchise organization.
Additionally, the restaurant chain said it has engaged an executive search firm and is actively seeking a president for each business unit. After the deal closes, Applebee's will operate as a subsidiary of IHOP, the company said.
Shares of IHOP were flat at $55.30, while Applebee's stock was down 8 cents at $25.22. Katherine Hunt kh/tk1 COPYRIGHT Copyright Thomson Financial News Limited 2007. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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