Pappas Restaurants will purchase On The Border Mexican Grill & Cantina in a deal that will help the latter emerge from Chapter 11.

Pappas Restaurants was the prevailing bidder in the auction for On The Border. The Houston, Texas-based company said the acquisition will help expand its Tex-Mex category by adding a “nationally recognized concept that offers bold flavors at an accessible price point”. 

Pappas plans to further strengthen and modernize On The Border locations and explore ways to enhance menu, operations, and guest experience while honoring the brand’s history and fan-favorite offerings. 

“On The Border is a brand with deep heritage and loyal guests, and we see tremendous opportunity to invest in its future,” said Mike Rizzo, CEO of Pappas Restaurants. “Our shared Texas roots and passion for hospitality make this a natural fit.”

Founded in Dallas in 1982, On the Border currently operates 60 company-owned restaurants across 18 states and has 20 franchised locations in the US and South Korea.

The chain’s parent company, OTB Holding, filed for Chapter 11 bankruptcy protection in March.

The deal with Pappas Restaurants, subject to court approval, is expected to close in the coming weeks.