Jun 24, 2019

L Catterton agrees to buy Del Frisco's for $650 million

A rib eye at Del Frisco's Double Eagle Steak House. Photo: Katherine Frey/The Washington Post via Getty Images

L Catterton agreed to buy Del Frisco’s Restaurant Group for approximately $650 million in cash, or $8 per share.

Why it matters: This reflects how private equity passes around high-end steakhouses like they're a side of lobster mac and cheese.

  • Del Frisco's was once owned by Lone Star. L Catterton once backed the parent company of Fleming's. BRSR owned Ruth's Chris. Both Bunker Hill Capital and TH Lee held Smith & Wollensky. And so on.

Price talk: This is a 22% premium to where Del Frisco's was trading before announcing last December that it would explore strategic alternatives. The deal value is just a slight increase over the $629 million that Lone Stars Funds paid to buy Del Frisco's 13 years ago.

The bottom line: "Del Frisco's has been on the market for much of the year, pushed by activist investors that have soured on the company's performance, particularly since Del Frisco's used debt to pay $325 million for Barteca Restaurant Group, the owner of Barcelona and Bartaco.... The company operates 78 restaurants in its various brands and first-quarter same-store sales rose 1.3% at all of its brands," writes Restaurant Business' Jonathan Maze.

Go deeper: McDonald's latest acquisition is a game changer

Go deeper

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1 p.m. ET: 1,237,420 — Total deaths: 67,260 — Total recoveries: 252,944Map.
  2. U.S.: Total confirmed cases as of 1 p.m. ET: 312,762 — Total deaths: 9.132 — Total recoveries: 15,044Map.
  3. Public health latest: CDC launches national trackers and recommends face coverings in public. Federal government will cover costs of COVID-19 treatment for uninsured. Surgeon general says this week will be "our Pearl Harbor, our 9/11 moment."
  4. 2020 latest: "We have no contingency plan," Trump said on the 2020 Republican National Convention. Biden says DNC may have to hold virtual convention.
  5. States updates: New York Gov. Andrew Cuomo said the state "literally going day-to-day" with supplies.
  6. Work update: Employees still going to work face temperature checks, distanced work stations, protective devices and mass absences.
  7. What should I do? Pets, moving and personal health. Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

Subscribe to Mike Allen's Axios AM to follow our coronavirus coverage each morning from your inbox.

Cuomo says New York is "literally going day-to-day with our supplies"

New York Gov. Andrew Cuomo said in a press conference on Sunday that New York is struggling to maintain medical supplies while combatting the novel coronavirus — operating "literally" on a "day-to-day" basis.

Why it matters: New York City has become an epicenter of the coronavirus outbreak, facing mass quarantines and stay-at-home orders. Cuomo said Saturday that New York reported 630 new deaths in 24 hours — an "all-time increase" that beat the previous day's record of 562 deaths.

Illinois governor: "The president does not understand the word 'federal'"

Illinois Gov. J.B. Pritzker said on CNN's "State of the Union" Sunday that President Trump's comments about the federal government's stockpile of medical equipment suggest he "does not understand the word 'federal.'"

Why it matters: White House adviser Jared Kushner argued at a press briefing last week that the "notion of the federal stockpile was it’s supposed to be our stockpile; it’s not supposed to be state stockpiles that they then use."