(Read more on the debt and equity markets.)
ATLANTA-Orlando-based Darden Restaurants Inc. has taken a step forward in acquiring Rare Hospitality International Inc. with the completion of its tender offer to acquire all outstanding shares of common stock of the locally based company. Darden paid $38.15 per share, cash.
When the clock struck midnight, turning Sept. 28 into Sept. 29, the initial offering period expired with a total of 26,991,599 shares of Rare common stock validly tendered and not withdrawn, according to a Darden release.
In its next move, according to the release, Darden will acquire all remaining Rare shares through a short-form merger under Georgia law at the same price per share paid in the tender offer. When all the ink is dry, Rare will become a wholly owned subsidiary of Darden and will stop trading on the Nasdaq.
Both side of the deal gave threw their support behind the deal in August when Darden revealed its plans to acquire Rare in a $1.4-billion transaction, as GlobeSt.com previously reported. The total price tag included the assumption of outstanding debt and capital lease obligations.
In Rare Hospitality's stable of owned, operated and franchised restaurants are 292 LongHorn Steakhouse and 29 Capital Grille restaurants. Darden's portfolio counts 1,400 Red Lobster, Oliver Garden, Bahama Breeze, Smokey Bones and Season 52 restaurants with annual sales of $5.6 billion.
At the time the merger was announced, Darden's chairman and CEO Clarence Otis said the deal made perfect senses. "Total sales growth at Darden has lagged casual dining chains mainly because of the shortfalls in new restaurant growth because we have had less than desired success with inherently higher risk venture stage new concepts," he explained. "We focused on finding the right partner with proven growth concepts and Rare is the right partner."
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