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Darden Restaurants will acquire Chuy Farms for approximately $605 million in cash, the companies jointly announced Wednesday.
Darden has agreed to acquire all outstanding shares of Chuy's at $37.50 per share, according to a news release. The Tex-Mex restaurant chain joins Darden's portfolio, which includes restaurants such as Olive Garden, LongHorn Steakhouse and Ruth's Chris Steak House.
“Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy's is an excellent fit that supports our winning strategy,” Darden CEO Rick Cardenas said in a statement. “I'm excited to welcome their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category.”
According to the release, Chuy's generated total revenue of more than $450 million in the 12 months ended March 31. The company, founded in Austin, Texas, in 1982, has 101 restaurants in 15 states.
Cardenas said in the press release that Chuy's has strong performance and growth potential. “Together we will accelerate our business objectives and bring our authentic, home-cooked Tex-Mex food to more guests and communities,” Chuy's CEO Steven Hislop said in a statement.
Darden expects the transaction to close in its second fiscal quarter, the statement said.
