Darden Restaurants Completes Acquisition of Chuy's Holdings, Inc.

Rhea-AI Summary

Darden Restaurants (NYSE:DRI) has completed the acquisition of Chuy's Holdings in an all-cash transaction valued at approximately $605 million.

The acquisition was approved by a majority of Chuy's Holdings' stockholders on October 10, 2024, following the merger agreement announced on July 17, 2024. Darden financed the acquisition with proceeds from a $400 million offering of 4.350% senior notes due 2027 and a $350 million offering of 4.550% senior notes due 2029, issued on October 3, 2024.

Chuy's, founded in 1982 in Austin, Texas, operates over 100 restaurants across 15 states, offering authentic Tex-Mex inspired dishes in a unique atmosphere. With this acquisition, Chuy's joins Darden's diverse portfolio of brands, including Olive Garden and LongHorn Steakhouse.

As a result of the merger, Chuy's Holdings' common stock has ceased trading on Nasdaq.

Positive

• Darden Restaurants completed the acquisition of Chuy's Holdings for $605 million.
• Chuy's adds over 100 restaurants to Darden's portfolio, expanding its market presence.
• The acquisition was financed by $750 million in senior notes, demonstrating strong financial backing.

Negative

• Chuy's Holdings' common stock ceased trading on Nasdaq, affecting current shareholders.

ORLANDO, Fla., Oct. 11, 2024 /PRNewswire/ -- Darden Restaurants, Inc. ("Darden") (NYSE:DRI) today announced that it has completed the acquisition of Chuy's Holdings, Inc. ("Chuy's Holdings") in an all-cash transaction with an enterprise value of approximately $605 million. The transaction was approved by a majority of Chuy's Holdings stockholders on October 10, 2024. This follows the merger agreement that was announced on July 17, 2024.

Darden financed the acquisition with a portion of the proceeds of a $400 million offering of 4.350% senior notes due 2027 and a $350 million offering of 4.550% senior notes due 2029, which were issued on October 3, 2024.

With the acquisition now complete, Chuy's joins Darden's portfolio of differentiated brands which also includes Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V's and Bahama Breeze.

Founded in Austin, Texas in 1982, Chuy's operates more than 100 restaurants across 15 states serving a distinct menu of authentic, made from scratch Tex-Mex inspired dishes. Chuy's highly flavorful and freshly prepared fare is served in a fun, eclectic and irreverent atmosphere, while each location offers a unique, "unchained" look and feel, as expressed by Chuy's motto "If you've seen one Chuy's, you've seen one Chuy's!"

In connection with the completion of the merger, Chuy's Holdings common stock ceased trading on Nasdaq.

About Darden
Darden is a restaurant company featuring a portfolio of differentiated brands that include Olive Garden, LongHorn Steakhouse, Yard House, Ruth's Chris Steak House, Cheddar's Scratch Kitchen, The Capital Grille, Chuy's, Seasons 52, Eddie V's and Bahama Breeze. For more information, please visit www.darden.com.

CONTACT: Rich Jeffers, rjeffers@darden.com

 

View original content:https://www.prnewswire.com/news-releases/darden-restaurants-completes-acquisition-of-chuys-holdings-inc-302272722.html

SOURCE Darden Restaurants, Inc.: Financial

FAQ

What is the value of Darden Restaurants' acquisition of Chuy's Holdings?

The acquisition is valued at approximately $605 million.

How did Darden Restaurants finance the acquisition of Chuy's Holdings?

Darden financed the acquisition with proceeds from a $400 million offering of 4.350% senior notes due 2027 and a $350 million offering of 4.550% senior notes due 2029.

When was the acquisition of Chuy's Holdings by Darden Restaurants approved?

The acquisition was approved by a majority of Chuy's Holdings' stockholders on October 10, 2024.

What will happen to Chuy's Holdings' common stock after the acquisition?

Chuy's Holdings' common stock has ceased trading on Nasdaq following the acquisition.

How many restaurants does Chuy's operate and in how many states?

Chuy's operates over 100 restaurants across 15 states.