The Steak n Shake Co. said today it plans to acquire the Western Sizzlin restaurant chain in a deal valued at $23 million.
The agreement calls for Roanoke, Va.-based Western Sizzlin, a steak and buffet concept with 110 locations in 19 states, to become a wholly owned subsidiary of the Indianapolis-based burger chain.
The CEO and chairman of Steak n Shake, Sardar Biglari, also heads the Western Sizzlin operation. His hedge fund, Lion Fund, controls 33 percent of Western Sizzlin shares and about 3.4 percent of Steak n Shake shares.
Steak n Shake, which has 490 restaurants in 21 states, on Monday reported big increases in customer traffic and same-store sales for its quarter ended July 1. The company also disclosed plans to pursue investments in the form of acquisitions, joint ventures or partnerships.