Mrs. Fields Original Cookies has agreed to acquire the Great American Cookie Co.
Great American, based in Atlanta, has 323 retail outlets, primarily in the southeastern and south central states, generating about $110 million in revenue.The acquisition of Great American would bring the total number of Mrs. Fields stores to 1,342, of which 761 are franchised or licensed, said Larry Hodges, Mrs. Fields president and chief executive officer.
With the addition of Great American, total revenues for Mrs. Fields was estimated at $350 million.
Mrs. Fields will continue to operate Great American's dough facility in Atlanta, but most of its corporate and administrative functions will be relocated to Salt Lake City. Mrs. Fields intends to operate the acquired stores under the Great American brand name.
The purchase is expected to be completed Monday and is subject to certain conditions, including Mrs. Fields' receipt of funds under financing arrangements that have been made.
It also is subject to the successful completion of a tender offer by Mrs. Fields for all outstanding Senior Secured Notes due 2001 of Great American at a cash price equal to $1,040 per $1,000 principal, plus unpaid interest.