![]() Darden expects the transaction to be completed in fiscal 2017 quarter four. Total acquisition and integration-related expenses are expected to be around $25 to $35 million, and the transaction is expected to be accretive to Darden's diluted net earnings per share in fiscal 2018 by around 12 cents, excluding any acquisition and integration-related expenses.ĭarden will also pay $10 million for certain Cheddar's transaction-related tax attributes and reimburse its equity holders for pre-closing capital expenditures on new restaurants under development.īaines will remain with the company as president of Cheddar’s and report to Gene Lee, Darden’s president and CEO. Additionally, Darden's expertise will enable us to further capitalize on our growth potential," says Ian Baines, Cheddar's CEO. ![]() Our operating philosophy and values are similar, and we believe this transaction provides a great opportunity for our team members to continue to grow and develop in their careers. "We are excited about the opportunity to be a part of Darden. The average annual restaurant volume is $4.4 million, according to Darden. The Texas-based brand made an even bigger splash on Monday.ĭarden Restaurants, Inc., parent company to Olive Garden, LongHorn Steakhouse, The Capital Grille, Seasons 52, Bahama Breeze, Eddie V’s, and Yard House announced it agreed to acquire Cheddar’s for $780 million in an all-cash transaction from its stockholders, including private equity firms L Catterton and Oak Investment Partners.Ĭheddar’s was founded in 1979 in Arlington, Texas, and currently has 140 owned and 25 franchised locations across 28 states. It was the first time the 165-unit chain even earned votes to be included in the rankings. A November study by Market Force Information revealed, in a surprising twist, that Cheddar’s Scratch Kitchen had unseated Cracker Barrel as America’s favorite chain. ![]()
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