Bob Evans Sale Produces Special Dividend

After years of activist involvement, and some investors seeing potential value but unsure whether it would ever be unlocked, there's a new chapter unfolding in the Bob Evans Farms (BOBE) story. The sale of the company's restaurant chain to Golden Gate Capital for $565 million, and the purchase of Pineland Farms Potato Co. for $115 million, are complete. The company, which was best-known for its casual dining restaurants, will now focus solely on its prepared-foods business.

One of the most interesting aspects of this transition from an investor perspective is the use of the proceeds from the restaurant sale. Besides paying down debt, the company is also paying a $7.50 special cash dividend per share in mid-June. That represents nearly $150 million that will be returned to shareholders. BOBE has a decent history as a dividend payer, having paid dividends for more than 30 years, and with a current nine-year streak of increases. (In addition, the company has reduced shares outstanding by nearly 35% over the past six years via stock buybacks)....253 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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