New Albany-based Bob Evans Farms Inc. is splitting its restaurants and packaged food businesses with two sales announced late Tuesday—one deal selling the 523 restaurants in 18 states and the other buying a potato processing company.

New Albany-based Bob Evans Farms Inc. is splitting its restaurants and packaged food businesses with two sales announced late Tuesday—one deal selling the 523 restaurants in 18 states and the other buying a potato processing company.

Private equity firm Golden Gate Capital is buying the restaurant business for $565 million, plus assumption of liabilities of up to $50 million, the company announced. Bob Evans Restaurants will continue to operate out of its New Albany headquarters with Saed Mohseni, CEO of Bob Evans Farms Inc., becoming CEO of Bob Evans Restaurants. Other executive team members are also to remain during and after the transaction is completed, expected to be by April 28.

Meanwhile, it was announced Bob Evans Farms Foods has purchased Pineland Farms Potato Company for $115 million, a deal also expected to close by the end of April.

Proceeds of the sale of the restaurant business are expected to go toward a special dividend to shareholders within 60 days of closing—a $150 million payment of $7.50 per share.

“This is an important time for our brand, our company and our team, and this partnership will provide Bob Evans Restaurants with the resources, knowledge and flexibility needed to drive our growth, while remaining true to the values of our founder, Bob Evans,” Mohseni said in a news release.

Bob Evans has been under pressure for several years from an activist investor to make changes such as selling and leasing back its restaurants or spinning off the food products division.