IHOP TO ACQUIRE APPLEBEE’S FOR $2.1 BILLION

Pancake-centric IHOP Corp. has agreed to acquire troubled Applebee's International Inc. for $2.1 billion in cash, or $25.50 per share, the companies disclosed this morning (July 16). Rumors have swirled for weeks, but now it’s confirmed. Both parties say they expect the acquisition to be completed during the 4th quarter.

IHOP chairman and chief and former president of Applebee's U.S. operations, Julia Stewart, will assume management responsibility for Applebee's.