Breaking News: Darden Restaurants Acquires Chuy’s Holdings for $605 Million
Acquisition Highlights
Darden Restaurants, a renowned restaurant chain, has announced its acquisition of Chuy’s Holdings, a popular Tex-Mex restaurant chain, for approximately $605 million. This significant deal will add a new dimension to Darden’s portfolio, which includes famous brands like Olive Garden, LongHorn Steakhouse, and Ruth’s Chris Steak House.
Acquisition Terms
Under the terms of the deal, Darden agreed to acquire all outstanding shares of Chuy’s at $37.50 per share. The transaction is expected to be completed in Darden’s fiscal second quarter.
Chuy’s Profile
Chuy’s Holdings, founded in 1982 in Austin, Texas, has a total of 101 restaurants across 15 states. In its latest 12 months, the company generated total revenues of over $450 million.
Darden’s Statement
"We believe Chuy’s is an excellent fit that supports our winning strategy," said Rick Cardenas, CEO of Darden Restaurants. "I am excited to welcome their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category."
Tex-Mex Delight
Cardenas added that Chuy’s has strong performance and growth potential. "Together, we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities," said Steven Hislop, CEO of Chuy’s Holdings.
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What Does This Mean for Darden?
With the acquisition of Chuy’s, Darden expands its portfolio and enters the Tex-Mex segment. This move allows the company to tap into a new customer base and increase its presence in the casual dining market.
Why Is This Acquisition Important?
This acquisition marks a significant milestone for Darden Restaurants, solidifying its position as a leading player in the restaurant industry. Chuy’s strong performance and growth potential make this deal an attractive addition to Darden’s portfolio.
Conclusion
In conclusion, Darden Restaurants’ acquisition of Chuy’s Holdings for $605 million marks a significant milestone in the company’s growth journey. This deal not only adds a new brand to Darden’s portfolio but also diversifies its offerings, allowing the company to tap into new markets and customer bases.
Frequently Asked Questions
Q: What is the value of the acquisition?
A: The acquisition is valued at approximately $605 million in cash.
Q: What is the acquisition price per share of Chuy’s?
A: Darden agreed to acquire all outstanding shares of Chuy’s at $37.50 per share.
Q: When is the expected completion date of the transaction?
A: The transaction is expected to be completed in Darden’s fiscal second quarter.
Q: How many restaurants does Chuy’s have?
A: Chuy’s has a total of 101 restaurants across 15 states.
Q: Who is the CEO of Darden Restaurants?
A: Rick Cardenas is the CEO of Darden Restaurants.
Q: Who is the CEO of Chuy’s Holdings?
A: Steven Hislop is the CEO of Chuy’s Holdings.
Author: www.cnbc.com
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