Darden Restaurants, the owner of Olive Garden, has bought Ruth’s Chris Steak House for approximately $715 million, according to a press release from the company.
Ruth’s Chris Steak House was started in New Orleans, Louisiana, by Ruth Fertel in 1965 and is well known for its steaks served on “sizzling” hot plates, its robust wine list, and Louisiana-style sides.
“Ruth’s Chris is a strong and distinctive brand in the fine dining segment with an impressive history of delivering elevated dining experiences to their loyal guests,” Rick Cardenas, Darden president and CEO, said in the press release.
“It fits the criteria we have for adding a brand to our portfolio and supports our winning strategy. Ruth’s Chris is a great complement to our portfolio of brands, and I’m pleased to welcome their nearly 5,000 team members to Darden,” Cardenas.
According to the press release, Darden Restaurants acquired Ruth’s Chris Steak House at $21.50 per share, representing more than a 30% premium on the 30-day volume-weighted average price of the stock.
Darden expects the pre-tax synergies to be between $5 million and $10 million in the first year and $15 million to $20 million in the second year. The company estimates the total expenses for acquisition and integration to be approximately $55 to $60 million.
Ruth’s Chris Steak House, which is headquartered in Winter Park, Florida, has more than 150 locations across the United States.
“We are excited about the opportunity to join the Darden family,” Cheryl Henry, president, CEO, and chairperson of Ruth’s Chris Steak House, said in the press release.
“Our strategy and operating philosophy aligns well with Darden, and we have a strong cultural fit that should ensure a smooth transition. This transaction will also provide more opportunities for our team members to develop in their careers as we continue to grow our 57-year-old iconic brand.”
Besides Olive Garden, Darden Restaurants owns LongHorn Steakhouse, Cheddar’s Scratch Kitchen, Yard House, The Capital Grille, Seasons 52, Bahama Breeze, and Eddie V’s.
