PARSIPPANY — Darden Restaurants, Inc. and Ruth’s Hospitality Group, Inc. jointly announced that they have entered into a definitive merger agreement pursuant to which Darden will commence a tender offer to acquire all of the outstanding shares of Ruth’s for $21.50 per share in an all-cash transaction with an equity value of approximately $715 million. Ruth’s, owner and operator of Ruth’s Chris Steak House will complement Darden’s portfolio of differentiated brands, which currently includes The Capital Grille, Olive Garden, LongHorn Steakhouse, Yard House, Cheddar’s Scratch Kitchen, Seasons 52, Bahama Breeze and Eddie V’s.
Ruth’s Chris was founded in 1965 in New Orleans, Louisiana, by Ruth Fertel and features signature USDA Prime steaks served sizzling on 500-degree plates, New Orleans-inspired sides, and an award-winning wine list. Ruth’s Chris has 154 locations around the globe, including in the Parsippany Hilton, including 80 company-owned or -operated restaurants and 74 franchised restaurants, generating systemwide sales of over $860 million, total revenues of over $500 million, and average annual restaurant volumes for company-owned or -operated locations of $6.2 million in Ruth’s fiscal year 2022.
“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,” said Darden President and CEO Rick Cardenas. “It fits our criteria 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.”
Cheryl Henry, President, CEO, and Chairperson of Ruth’s, stated, “We are excited about the opportunity to join the Darden family. Our strategy and operating philosophy align 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.”
