Bob Evans sells its restaurants to investors for $565 million

NEW ALBANY, Ohio - Bob Evans is selling its restaurants to a private equity firm for $565 million, splitting that part of the company from the food division that makes sausage, refrigerated side dishes and other convenience foods.

New Albany, Ohio-based Bob Evans Farms Inc. says it’s selling the restaurants to Golden Gate Capital to focus on growing the food division. It has over 500 restaurants in 18 states.

It also announced it is buying Pineland Farms Potato Company, based in Mars Hill, Maine, for at least $115 million.

Bob Evans says both deals are expected to close by year’s end.

It says the head of BEF Foods, Mike Townsley, will become Bob Evans president and chief executive. Current president and CEO Saed Mohseni will continue leading the restaurants after the split.