Darden Closes Ruth's Hospitality Acquisition; RUTH Ceases Trading On Nasdaq

Darden Restaurants Inc (NYSE:DRI) closed the acquisition of Ruth's Hospitality Group, Inc (NASDAQ:RUTH) in cash for $21.50 per share.  

The price translates to an equity value of approximately $715 million.

With the acquisition, Ruth's Chris Steak House brand is added to Darden's brand portfolio, which includes Olive Garden, LongHorn Steakhouse, Yard House, Cheddar's Scratch Kitchen, Seasons 52, and Eddie V's.

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

Also Read: Increasing Same Store Sales At Olive Garden Signals Bullish Outlook For Darden Restaurants: Analyst

Darden expects to garner pre-tax synergies of between $5 million and $10 million within the first year and between $15 million and $20 million in the second year of the acquisition closure.

The company projects the acquisition to be accretive to its net EPS in FY24 by approximately $0.10 to $0.12, excluding acquisition and integration-related expenses (projected around $55 million to $60 million).

In March, DRI reported Q3 FY23 revenues of $2.79 billion, beating the consensus of $2.73 billion and EPS of $2.34, exceeding the consensus of $2.25. 

Price Action: DRI shares are trading higher by 0.64% at $167.10 on the last check Wednesday.