Darden Restaurants has agreed to acquire Tex-Mex restaurant chain Chuy’s Holdings for $37.50 per share, equivalent to about $605 million.
The acquisition has received approval from the board of directors of both companies. The deal will complement Darden’s porfolio, which includes Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s and Bahama Breeze.
“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,” said Rick Cardenas, Darden president and CEO.
As of July 16, Chuy’s had 101 restaurants across 15 states. In the 12 months ended March 31, the chain’s revenue totaled over $450 million.
“Darden shares many of our same core values, particularly our operating philosophy and strong team member cultures,” said Steven Hislop, Chuy’s chairman, CEO and president.
“Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities.”