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Darden Restaurants is acquiring Chuy’s Holdings for approximately $605 million in cash, the companies jointly announced Wednesday.
Darden has agreed to acquire all outstanding shares of Chuy’s for $37.50 per share, according to a news release. The Tex-Mex restaurant chain joins Darden’s portfolio, which includes restaurants such as Olive Garden, LongHorn Steakhouse and Ruth’s Chris Steak House.
“Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy’s is an excellent fit that supports our winning strategy,” Darden CEO Rick Cardenas said in a statement. “I am excited to welcome its 7,400 team members to Darden and diversify the Darden portfolio into a new dining category.”
Chuy’s generated more than $450 million in total sales for the 12 months ended March 31, the news release said. The company, founded in Austin, Texas, in 1982, operates 101 restaurants in 15 states.
Cardenas said in the release that Chuy’s has strong performance and growth potential. “Together, we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities,” Steven Hislop, CEO of Chuy’s, said in a statement.
According to the press release, Darden expects the transaction to close in the second fiscal quarter.