The sign of our times just keeps getting better with article after article talking about growth in the hospitality industry.  Many concepts are merging to form a stronger organization which is a win for everyone, customers and restaurant employees alike. 

 Steak n Shake Co. and Western Sizzlin Corp. said Friday they have signed an agreement to merge in a deal worth $38.8 million.

The agreement, first announced as a plan in August, must still garner shareholder approval from Western Sizzlin’ and includes a 30-day “go-shop period” where additional acquisition proposals can be entertained, according to filings with federal securities regulators.

Details of the proposed deal show that Steak n Shake, the parent to the 468-unit family dining chain, would become a subsidiary to Western Sizzlin, operator or franchisor to the namesake 105-unit steak buffet chain. Both companies are led by former activist investor Sardar Biglari.

The deal is expected to close through a special dividend to Western Sizzlin shareholders in the form of 1.3 million shares of Steak n Shake stock that is owned by an investment division of Western Sizzlin. The merger agreement also calls for Steak n Shake to issue and deliver to Western stockholders Steak n Shake unsecured debt with a principal amount of nearly $23 million. At the effective time of the merger, each share of Western’s common stock would be converted into the right to receive debentures equal to $8.08 per share, the companies said.