Del Frisco’s CEO on $325M Barteca acquisition
Del Frisco’s Restaurant Group CEO Norman Abdallah on the company’s acquisition of Barteca Restaurant Group for $325 million, the company’s expansion and the state of the consumer.
Del Frisco’s Restaurant Group announced Monday it will be acquired by private equity firm L Catterton after the two agreed on a cash deal worth about $650 million.
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Del Frisco’s stockholders will receive $8 for each share – an 18.9 percent premium to Friday’s closing share price. The restaurant group had announced it was reviewing strategic alternatives last December.
The deal, which will take Del Frisco’s private, is expected to be complete by the fourth quarter.
“In consultation with our outside advisors, the Board has been evaluating several strategic and financial alternative options since December 2018. This transaction offers immediate liquidity at a significant premium for our stockholders while providing the best path forward for our Del Frisco’s brands, our employees, and loyal guests,” Ian R. Carter, the chairman of the Del Frisco’s board, said in a news release Monday.
The private equity firm said it plans to split Del Frisco’s steakhouses — Del Frisco’s Grille and Del Frisco’s Double Eagle Steakhouse — from its other “upscale regionally-inspired cuisine” restaurants — Bartaco and Barcelona Wine Bar. Del Frisco’s has 78 restaurants in 17 states and Washington, D.C.
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“At L Catterton, we bring more than just capital — we bring significant operational expertise to our investments,” L Catterton’s managing partner Andrew Taub said. “Over the last 30 years, L Catterton has invested in nearly 30 restaurant concepts globally to create a number of industry leaders. Del Frisco’s has four outstanding brands in two distinct and attractive categories — upscale regionally-inspired cuisine, and steak and grill.”
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“We’re excited to partner with the Company to harness the power of these brands by operating the upscale regionally-inspired brands separately from the steak and grill concepts,” he added.
