Irving-based Del Frisco’s Restaurant Group Inc. announced Sept. 18 it has signed a definitive agreement to sell Sullivan’s Steakhouse to Romano’s Macaroni Grill for gross proceeds of approximately $32 million.
The company said in a news release that the net proceeds, when finalized, will be used to reduce outstanding indebtedness. The transaction is expected to close on or before Sept. 30, 2018.
Scott Smith, who had served as president of Sullivan’s Steakhouse since January 2017, will remain with Del Frisco’s and assume similar responsibilities for Del Frisco’s Double Eagle Steakhouse. Ray Risley, who previously served in that same position, has resigned to pursue other interests, the news release said.
“The sale of Sullivan’s Steakhouse enhances our financial condition while enabling us to sharpen our focus on opportunities with the highest potential for strong returns,” Norman Abdallah, CEO of Del Frisco’s Restaurant Group Inc., said in the news release.
“The acquisition of Sullivan’s Steakhouse is precisely aligned with our strategic plan and vision. We are focused on brands that provide guests with true hospitality and a unique experience, which the Sullivan’s Steakhouse concept and team embodies,” Nishant Machado, president and chief executive officer, Romano’s Macaroni Grill and senior managing director, Mackinac Partners of Dallas, said in the release.
Piper Jaffray acted as exclusive financial advisor to Del Frisco’s and its board of directors and Kirkland & Ellis LLP acted as legal advisor. Gibson, Dunn & Crutcher LLP acted as legal advisor to Mac Acquisition, LLC.
Irving-based Del Frisco’s Restaurant Group Inc. is a collection of 84 restaurants across 24 states and Washington, D.C., including Del Frisco’s Double Eagle Steakhouse, Barcelona Wine Bar, bartaco, and Del Frisco’s Grille.
Romano’s Macaroni Grill is an Italian restaurant brand founded in 1988. It was named the No. 1 Italian Restaurant Chain in America by a Nation’s Restaurant News consumer survey, and has 85 company-owned locations in 22 states, plus 23 franchise locations in the U.S. and seven other countries.