Locally-based Ryan's has about 340 units, based primarily in Southern and Midwestern states under the names Ryan's Grill, Buffet & Bakery and Fire Mountain. The transaction will give stockholders of Ryan's, which is traded on the Nasdaq, $16.25 per share in cash. Its shares closed yesterday at $11.22.

The new company will be a private entity with annual revenues of about $1.7 billion. Buffets is held by Caxton-Iseman Capital, a New York City-based private-equity firm. The boards of both companies, which have approved the deal, expect it to close some time in the fourth quarter.

Buffets currently operates 337 units in 33 states under the names Old Country Buffet or HomeTown Buffet. The company also has nine Tahoe Joe's Famous Steakhouse restaurants. The Ryan's deal will help bolster Buffets in the South.