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Steak n Shake nearer to merger with steak chain

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Indianapolis-based Steak n Shake Co. is a step closer to making its planned merger with Roanoke, Va.-based Western Sizzlin a reality.

Under terms of the deal, Steak n Shake will pay Western Sizzlin shareholders $22.9 million and Western will pay its shareholders a $15.9 million stock dividend, making the total deal worth about $38.8 million. The value is likely to change based on stock-price fluctuations before the deal closes. 

Approval of the agreement by the two publicly traded companies was announced late Thursday and negotiated between special committees of the boards of directors from both companies, a news release said.

The $15.9 million dividend will be distributed to Western stockholders on Nov. 6 whether or not the merger is completed, the companies said.

Details of the deal come about two months after Steak n Shake announced that it planned to purchase Western Sizzlin, in a move that puts the burger chain back in the steakhouse business for the first time since exiting it nearly a decade ago.

In 2000, the company—then known as Consolidated Products Inc.—sold off its 11 Colorado Steakhouses in order to focus on its core burger business.

But the company’s strategy has shifted dramatically since Texas hedge fund manager Sardar Biglari took the helm last year. Biglari serves as president and CEO of both Steak n Shake and Western Sizzlin, and his Lion Fund is Western Sizzlin’s largest shareholder and a leading stockholder in Steak n Shake.

Steak n Shake is the far larger company, with a stock market value of about $320 million and 486 restaurants. Most Steak n Shake restaurants are company-owned and none are farther west than Texas. Western Sizzlin has about 100 restaurants, nearly all franchised. They’re in the Midwest, East, South and in California.

Neither company’s stock has moved dramatically since the merger announcement in August. Steak n Shake shares closed Thursday at $12. Western Sizzlin ended the day at $14.40.
 
 

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.

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