Darden Restaurants is set to acquire Chuy’s Holdings in a deal valued at approximately $605 million in cash, as announced by both companies on Wednesday.
Darden Restaurants is buying Tex-Mex chain Chuy’s for $605 million pic.twitter.com/w5SznKgLnq
— Dallas Texas TV (@DallasTexasTV) July 17, 2024
According to a press release, Darden will purchase all outstanding shares of Chuy’s at $37.50 per share. The Tex-Mex restaurant chain will join Darden’s impressive portfolio, which already includes popular establishments such as Olive Garden, LongHorn Steakhouse, and Ruth’s Chris Steak House.
“Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy’s is an excellent fit that supports our winning strategy,” Darden CEO Rick Cardenas stated. “I am excited to welcome their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category.”
$CHUY – Darden Restaurants (DRI) and Chuy’s Holdings said late Wednesday they have struck a deal for Darden to acquire Chuy’s for $37.50 per share in cash with an enterprise value of about $605 million.
Chuy’s will complement Darden’s portfolio, the companies said. The deal,… pic.twitter.com/FZAXfheSjc
— Marty Chargin (@MartyChargin) July 17, 2024
Chuy’s, which reported total revenues exceeding $450 million for the 12 months ending March 31, was founded in Austin, Texas, in 1982 and currently operates 101 restaurants across 15 states.
Cardenas expressed confidence in Chuy’s robust performance and growth potential, highlighting that the acquisition aligns with Darden’s strategic goals. “Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities,” Chuy’s CEO Steven Hislop added.
Darden Restaurants $DRI just announced it has agreed to acquire Chuy’s $CHUY for $37.5 per share representing an enterprise value of ~$605 million pic.twitter.com/grjeZAB4Jl
— Evan (@StockMKTNewz) July 17, 2024
Darden anticipates finalizing the acquisition in their fiscal second quarter, expanding their culinary offerings and enhancing their market presence.
Major Points:
- Darden Restaurants to acquire Chuy’s Holdings for approximately $605 million.
- Purchase price set at $37.50 per share for all outstanding shares of Chuy’s.
- Chuy’s will join Darden’s portfolio, including Olive Garden and LongHorn Steakhouse.
- Chuy’s has 101 restaurants and reported over $450 million in revenue for the year ending March 31.
- The acquisition is expected to complete in Darden’s fiscal second quarter.
Lap Fu Ip – Reprinted with permission of Whatfinger News
