L Catterton purchases steakhouse restaurant chain Del Frisco’s
Date: 2019-06-25   Author: Paroma Bhattacharya  Category: #news

L Catterton purchases steakhouse restaurant chain Del Frisco’s

The stakeholders of Del Frisco will receive $8 for each share, that is, an 18.9% premium to the last closing price.

Texas based steakhouse restaurant chain company, Del Frisco Restaurant Group has reportedly been acquired by L Catterton, a private equity company. The cash deal is valued at $650 million.

According to reliable sources, the stakeholders of Del Frisco will receive $8 for each share that is, an 18.9% premium to the last closing price.

Ian R. Carter, Chairman, Del Frisco was reportedly quoted stating that since December 2018, the board has been evaluating several strategic and financial alternatives. The acquisition will allow liquidity at a significant premium for the company’s stakeholders while providing the most suitable path for Del Frisco’s brand, employees and guests, he further added.

Citing reports, L Catterton will split Del Frisco’s steakhouses, namely Del Frisco’s Grille and Double eagle steakhouse from Bartaco and Barcelona wine bar- other regionally inspired cuisine restaurants.

For the record, Del Frisco’s restaurant group was founded in 1981. The group presently operates Del Frisco Grille, Del Frisco’s double eagle steak house, Barcelona Wine Bar and Bartacao. The group owns 78 restaurants in 17 states as well as Washington D.C.

Andrew Taub, managing partner, L Catterton reportedly stated that, over the last 30 years the company has invested in over 30 restaurant concepts globally in order to create industry leaders. With the acquisition, the company aims to further develop Del Frisco’s four established brands in two distinct categories, steak and grill and upscale regionally-inspired cuisine.

According to industry experts, ever since Del Frisco acquired Bartaco and Barcelona wine bar, the chain has been under constant pressure from activist investors due to the addition of $325 million debt into the company.

Reportedly, the deal is expected to be completed by the fourth quarter of this year.

Source credits: https://www.foxbusiness.com/markets/del-friscos-restaurant-group-l-catterton-650m-deal

https://www.restaurantdive.com/news/del-friscos-sold-to-private-equity-firm-for-650m/557458/



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Paroma Bhattacharya

Paroma Bhattacharya

Paroma currently works as a content developer for AlgosOnline. Fortified with a post-graduation degree in Journalism and Mass Communication, she delved head long into a writing career, creating resourceful and information enriched content in diverse fields. Apart from...

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