Summary
Darden Restaurants, Inc. (DRI) has officially completed its acquisition of RARE Hospitality International, Inc. (RARE) on October 1, 2007, for approximately $1.4 billion in cash. This strategic move, executed through a two-step merger process, significantly expands Darden's restaurant portfolio, adding 323 locations, primarily consisting of LongHorn Steakhouse and The Capital Grille brands. The acquisition was funded through a combination of interim financing from Bank of America, N.A., and Darden's existing revolving credit line, with plans to refinance the interim debt with long-term notes. As a result of the acquisition, RARE Hospitality shares have ceased trading on the NASDAQ. Investors should note that detailed financial statements and pro forma information regarding the acquisition are not yet included in this filing but are expected to be provided in a subsequent amendment by December 14, 2007. This acquisition marks a substantial growth step for Darden Restaurants.
Key Highlights
- 1Darden Restaurants, Inc. completed the acquisition of RARE Hospitality International, Inc. for approximately $1.4 billion in cash.
- 2The acquisition adds 323 restaurants to Darden's portfolio, including 292 LongHorn Steakhouse and 29 The Capital Grille locations.
- 3The transaction was structured as a two-step merger, involving a tender offer followed by a short-form merger.
- 4RARE Hospitality shares ceased trading on the NASDAQ effective October 1, 2007, following the completion of the merger.
- 5The acquisition was financed with $1.15 billion from an interim facility and drawings from a revolving credit line, with plans for long-term debt refinancing.
- 6Darden anticipates filing the acquired company's financial statements and pro forma information via an amendment by December 14, 2007.