The seven-unit, family-style Mitzel's chain operates in thePuget Sound area of Washington and was founded in 1985. Terms ofthe deal were not disclosed. The transaction is subject to certaincontingencies and is expected to close this month. Elmer'spresident Bruce Davis says the acquisition "will increase ourannual revenue base by nearly 40% and is expected to enhanceshareholder value."

Alas, publicly-traded Elmer's share price didn't budge with thenews, announced Monday. Despite a huge increase in volume, theshare price held steady at around $5 a share, as it did for much oflast week, before closing out Tuesday at $4.75 on very litletrading. The stock's 52-week high came in January of this year,when shares traded for as much as $6.53. It's 52-week low camethree days before that, when shares traded for as little as$4.31.

Elmer's Restaurants owns and operates 11 Elmer's restaurants andfranchises 19 Elmer's restaurants in Washington, Oregon,California, Alaska, Idaho, and Montana. The Company also owns andoperates ten delicatessen-style restaurants in Oregon. When thedeal closes, Mitzel's American Kitchen will become a division ofElmer's Restaurants, and the current senior management of Mitzel'swill come with the deal. Mitzel's restaurants are located inEverett, Kent, Fife, Tacoma, Poulsbo, Oak Harbor, and Mount Vernon,Washington. The Mount Vernon restaurant is being sold to anotherrestaurant chain.