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Olive Garden owner Darden to buy Ruth's Chris group for $715M

Claire Rychlewski

Andrew Harrer/Bloomberg via Getty Images

Olive Garden owner Darden Restaurants agreed to acquire Ruth's Hospitality Group, owner and operator of Ruth's Chris Steak House, for $21.50 per share.

Why it matters: Valued at $715 million, the deal represents the largest restaurant group merger this year.

Details: The all-cash transaction comes with a 32% premium over Ruth’s share price over the last 30 days.

  • Ruth's stock price soared 33% today to $21.42 per share.
  • Jefferies and Kirkland & Ellis served as sell-side financial and legal advisers to Ruth's, respectively. Hunton Andrews Kurth was Darden's legal adviser.

Catch up quick: Ruth's has 154 locations worldwide, 80 of which are company-owned and 74 of which are franchised.

  • Ruth's generated revenue in excess of $500 million last year.
  • Alongside Olive Garden, Darden owns LongHorn Steakhouse, Yard House, Cheddar's Scratch Kitchen, The Capital Grille, Seasons 52, Bahama Breeze and Eddie V's.
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