Darden Restaurants to Acquire Ruth’s Hospitality Group in $715 Million Transaction
Darden Restaurants, Inc. and Ruth’s Hospitality Group, Inc. have entered into a definitive merger agreement. Darden will commence a tender offer to acquire all outstanding shares of Ruth’s for $21.50 per share, in an all-cash transaction with an equity value of approximately $715 million.
Darden’s portfolio includes Olive Garden, LongHorn Steakhouse, Yard House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V’s.
Ruth’s Chris was founded in 1965 in New Orleans. The chain has 80 company-owned or -operated restaurants and 74 franchised restaurants, generating sales exceeding $860 million and total revenues over $500 million, and average annual restaurant volumes for company-owned or -operated locations of $6.2 million in Ruth’s fiscal year 2022.
Hunton Andrews Kurth LLP is acting as legal advisor to Darden. Jefferies LLC is acting as exclusive financial advisor, and Kirkland & Ellis LLP is acting as legal advisor to Ruth’s.