Darden Restaurants buys Ruth’s Chris steak houses
The Orlando owner of Olive Garden and other chain restaurants is buying Winter Park-based Ruth’s Hospitality Group for about $715 million.
Darden Restaurants revealed the all-cash deal Wednesday, saying it is paying $21.50 per share. Ruth’s stock price was at $16.03 per share Tuesday at market closing. The deal is expected to close in June. It has been unanimously approved by the boards of directors for both companies.
Ruth’s has 80 company-owned or operated Ruth’s Chris Steak House restaurants and 74 franchised locations worldwide.
Darden spokesman Rich Jeffers declined to answer questions from the Orlando Sentinel until after a company conference call scheduled for Thursday morning.
There will likely be some existing overlap between the two Central Florida companies, according to San Diego-based restaurant analyst John Gordon.
“In my opinion… there is no doubt that the Ruth’s Chris office in Winter Park will be eventually closed and it will be consolidated into the great Darden building,” Gordon said.