Authentic Restaurant Brands has entered a definitive agreement to acquire Fiesta Restaurant Group, parent company of the Miami-based Pollo Tropical restaurant brand.

The acquisition will be carried out in an all cash transaction, expected to be completed in the fourth quarter of this year.

Under the agreement, Fiesta common stockholders will receive cash consideration of $8.50 per share.

Authentic Restaurant Brands, a portfolio company of investment firm Garnett Station Partners, operates a range of popular regional food and beverage brands including Primanti Bros Restaurant & Bar, P J Whelihan’s Pub & Restaurant, and Mambo Seafood.

Stacey Rauch, Fiesta’s chair of the board of directors, said the transaction “delivers significant, immediate and certain value to Fiesta stockholders while providing Pollo Tropical the scale, resources and flexibility for continued success as part of a private company.”

The deal is also expected to enhance the guest experience and improve performance across the group’s footprint, added Dirk Montgomery, president and CEO at Fiesta.

“Pollo Tropical restaurants are a mainstay on the dining scene throughout Florida, and we are confident that ARB is a perfect partner to harness the power of the brand for the future,” said Alex Macedo, chairman of Authentic Restaurant Brands. 

Fiesta Restaurant Group has posted a revenue increase of 8.5 per cent for the 13-week second quarter ended July 2.

The group recorded net income of $3.8 million compared to net loss of $6.2 million in the second quarter of 2022.

Comparable restaurant sales at Pollo Tropical were up 9.6 per cent year over year.

As of July 2, there were 134 company-owned Pollo Tropical restaurants, and 28 franchised Pollo Tropical restaurants in the US, Puerto Rico, Panama, Guyana, and the Bahamas.