M&A · Industrials · Retail-Eating Places
Darden Restaurants Inc to acquire Ruths Hospitality Group, Inc.
Announced May 3, 2023 · Closed Jun 14, 2023
Deal value$715MEV $722M
Premium34.0%To unaffected price
EV / Adj. EBITDA9.3x1.4x EV / Revenue
ConsiderationAll cash$21.50 per share
Transaction
- Acquirer
- Darden Restaurants Inc (DRI)
- Target
- Ruths Hospitality Group, Inc.
- Buyer type
- Strategic
- Offer price per share
- $21.50
- Enterprise value
- $722M
- Status
- Closed Jun 14, 2023
Deal protections
- Break fee (target pays)
- $23.9M · 3.3%
- Reverse fee (buyer pays)
- —
- Go-shop
- No-shop
- Financing
- No financing condition
Advisors
- To the acquirer
- Not disclosed
- To the target
- Jefferies
Sector context · Industrials
- Comparable deals
- 78 in the prior 24 months
- Premium
- 34.0% vs. 48.0% sector median
- EV / Adj. EBITDA
- 9.3x vs. 12.2x sector median
- Break fee
- 3.3% vs. 2.8% sector median
Timeline
- AnnouncedMay 3, 2023
- Tender offerMay 16, 2023
- ClosedJun 14, 2023
Valuation · fairness opinions
Trading comparables$16.05$21.70
Trading comparables$15.20$21.50
Precedent transactions$18.75$25.75
Discounted cash flow$14.50$20.75
Premiums paid$18.60$23.95
Offer $21.50
Implied value per Ruths Hospitality Group, Inc. share by analysis, from Jefferies.