EDEN PRAIRIE, Minn., May 12 /PRNewswire/ -- Buffets, Inc. (Nasdaq: BOCB)
announced today that its Board of Directors has authorized the expenditure of
up to $40,000,000 for the purchase of outstanding shares of Buffets, Inc.
common stock, to be effected from time to time in transactions on the Nasdaq
National Market or otherwise. The company has approximately 45,398,981 shares
of common stock outstanding.
The company also announced that it has reached an agreement in principle
to purchase 11 Country Harvest Buffet restaurants from Country Harvest Buffet
Restaurants, Inc. of Seattle, Washington. Of the 11, 7 are located in
California, 2 in Washington, 1 in Colorado and 1 in Montana. The transaction
is expected to close in June, 1998, subject to the satisfaction of certain
conditions, including the approval of the Federal Bankruptcy Court overseeing
the Chapter 11 bankruptcy proceedings involving Country Harvest. With respect
to the acquisition, Buffets, Inc.'s Chairman and Chief Executive Officer Roe
Hatlen stated, "We are very pleased that we have reached a tentative agreement
regarding the acquisition of these restaurants. The locations fit in nicely
with our existing restaurants and represent a strategic addition to our
Buffets, Inc. is the largest operator of buffet style restaurants, with
364 restaurants (245 Old Country Buffet(R), 113 HomeTown Buffet(R), 4 Original
Roadhouse Grill(SM), 1 PIZZAPLAY(SM), and 1 Country Roadhouse Buffet &
Grill(SM)) in 34 states and franchises 24 restaurants (5 Old Country Buffet
and 19 HomeTown Buffet) in ten states.
This press release contains forward-looking statements, including
statements regarding potential purchases by the Company of Buffets, Inc.
common stock, and a possible transaction involving the purchase of Country
Harvest Buffet restaurants. Although the Board of Directors has authorized
the purchase of Company common stock, there is no certainty that such
purchases will occur, or at what level. Furthermore, with respect to the
prospective Country Harvest Buffet restaurant purchase, it is possible that
the approvals necessary to close the transaction may not transpire, or that
the ultimate transaction with the seller may differ materially from the
disclosures in this press release.
To receive a copy of this release via fax, please call "Company News
On-Call" 1-800-758-5804 extension 122825, or on the Internet at:
SOURCE Buffets, Inc.