ATLANTA U.S. Franchise Systems (USFS) has entered into a definitive agreement with the Pritzker family of Chicago, whereby all of the outstanding common stock of USFS will be acquired for $5.00 per share. In addition, the previously announced Recapitalization Agreement will be terminated.
The Recapitalization Agreement had provided for USFS to self-tender a portion of its outstanding shares, and for the Pritzker family business interests to acquire new convertible preferred stock of the company. However, now the Pritzker family business interests will acquire all outstanding shares of USFS, excluding those shares already owned by the Pritzker family and a portion of shares owned by the family of Michael Leven, CEO of USFS. Leven will become a shareholder of the acquiring entity upon completion of the offer. (9/19/00)