8-K/AAcquisitions & DispositionsOther EventsExhibits & Filings

DARDEN RESTAURANTS INC 8-K/A Report, Acquisition Completed (Aug 1, 2014)

Filed August 1, 2014For Securities:DRI

Summary

Darden Restaurants, Inc. (DRI) has officially completed the sale of its Red Lobster restaurant business to RL Acquisition, LLC, an affiliate of Golden Gate Capital, for approximately $2.1 billion. This significant divestiture, finalized on July 28, 2014, marks a strategic shift for Darden as it streamlines its portfolio. The company intends to use a substantial portion of the proceeds to retire debt, specifically planning to redeem $100 million in 7-1/8% Debentures due February 1, 2016. The filing also includes pro forma financial information to reflect the impact of this sale, providing investors with a clearer picture of Darden's post-transaction financial standing. Additionally, Darden is actively engaging with its stockholders regarding the upcoming annual meeting, urging investors to review proxy materials for important information concerning company decisions and governance.

Key Highlights

  • 1Completion of the sale of the Red Lobster business for approximately $2.1 billion.
  • 2The buyer is RL Acquisition, LLC, an affiliate of Golden Gate Capital.
  • 3Darden plans to use approximately $1.0 billion of the cash proceeds to retire outstanding debt.
  • 4Notice given to redeem all outstanding $100 million aggregate principal amount of 7-1/8% Debentures due February 1, 2016, on August 27, 2014.
  • 5Pro forma financial information reflecting the sale is included.
  • 6Company is in the process of soliciting proxies for its 2014 annual meeting of stockholders.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report the completion of the sale of Darden's Red Lobster business and related assets and liabilities to RL Acquisition, LLC, and to provide the required pro forma financial information that was not included in the initial report.

Darden received approximately $2.1 billion in total purchase price, including fees and expenses, from the sale of its Red Lobster business.

Darden expects to use approximately $1.0 billion of the cash proceeds from the sale to retire outstanding debt. Specifically, they have announced their intention to redeem $100 million of their 7-1/8% Debentures due February 1, 2016.

The unaudited pro forma condensed consolidated financial information presents how Darden's financial statements would look as if the Red Lobster sale had occurred at an earlier point in time. This helps investors understand the company's financial position and performance after the divestiture.