Summary
Darden Restaurants, Inc. (DRI) has officially closed its acquisition of Chuy’s Holdings, Inc. (CHUY) as of October 11, 2024. This strategic move, finalized through a merger where Chuy's becomes an indirect, wholly-owned subsidiary of Darden, signifies a significant expansion for Darden's brand portfolio. The transaction involved paying $37.50 in cash for each share of Chuy's common stock, resulting in an aggregate purchase price of approximately $660 million.
Key Highlights
- 1Darden Restaurants, Inc. completed the acquisition of Chuy’s Holdings, Inc. on October 11, 2024.
- 2The merger was structured as an all-cash transaction at $37.50 per share of Chuy's common stock.
- 3The total aggregate consideration paid for the acquisition was approximately $660 million.
- 4The acquisition was financed through a combination of Darden's recently issued senior notes, specifically a $400 million offering of 4.350% senior notes due 2027 and a $350 million offering of 4.550% senior notes due 2029.
- 5All outstanding Chuy's restricted stock units (RSUs) were vested and cashed out as part of the transaction.
- 6There were no outstanding options to purchase Chuy's common stock at the time of the merger.
- 7Chuy's will now operate as an indirect, wholly-owned subsidiary of Darden.
Frequently Asked Questions
The aggregate consideration paid by Darden Restaurants for the acquisition of Chuy's common stock and outstanding restricted stock units was approximately $660 million.
Darden financed the acquisition using a portion of the proceeds from its recent offerings of senior notes, including $400 million of 4.350% senior notes due 2027 and $350 million of 4.550% senior notes due 2029, which were issued on October 3, 2024.
Each share of Chuy's common stock was converted into the right to receive $37.50 in cash. All outstanding Chuy's restricted stock units (RSUs) were vested and cashed out. There were no outstanding options to purchase Chuy's common stock at the time of the merger.
As a result of the merger, Chuy's Holdings, Inc. will become an indirect, wholly-owned subsidiary of Darden Restaurants, Inc.