Private equity firm acquires Del Frisco’s in deal valued at $650M

Del Frisco’s Double Eagle Steakhouse now offering Alaskan King Crab Cocktail, Salmon Crudo and Corndog Battered Lobster Tails as part of its new bar menu

A Connecticut-based private equity firm has bought Del Frisco’s Restaurant Group, Inc.

After agreeing on an all-cash deal worth $650 million, Del Frisco announced Monday that it will be acquired by L Catterton, whose primary focus is on middle market and emerging high-growth companies.

Del Frisco’s stockholders will receive $8 per share, representing a 22% percent premium to the closing share price on Friday.

Headquartered in Irving, Del Frisco’s has 78 restaurants across 17 states and Washington, D.C., including a high-profile location in Downtown Fort Worth for its Del Frisco’s Double Eagle Steakhouse and a Del Frisco’s Grille location in Sundance Square.

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The publicly-trading company will now become private.

“After a thorough process, including considering Del Frisco’s current operations and future prospects, the Committee and the Board is confident that this transaction offers the most promising opportunity to realize the highest value for our stockholders,” said Joe Reece, Committee Chairman, Del Frisco’s Restaurant Group, Inc.

According to a press release, Del Frisco’s was evaluating strategic and financial alternatives since December, when a committee was set up to review the process.

“This transaction offers immediate liquidity at a significant premium for our stockholders while providing the best path forward for our Del Frisco’s brands, our employees, and loyal guests,” Del Frisco’s chairman Ian R. Carter said.

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Following the acquisition, L Catterton plans to separate Del Frisco’s bartaco and Barcelona Wine Bar, the “upscale regionally-inspired cuisine category”, from its steakhouse and grill restaurant business, according to the press release.

Del Frisco’s had acquired Barcelona Wine Bar and bartaco for $325 million in 2017.

“At L Catterton, we bring more than just capital – we bring significant operational expertise to our investments,” said Andrew Taub, Managing Partner at L Catterton. “Over the last 30 years, L Catterton has invested in nearly 30 restaurant concepts globally to create a number of industry leaders.”

L Catterton’s other investments include Outback Steakhouse, Fleming’s Prime Steakhouse, Culinary Concepts by Jean-Georges, P.F. Chang’s, Uncle Julio’s, among others.

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The acquisition is expected to complete by the fourth quarter of this year.