It was revealed on Tuesday that Benihana (NASDAQ:
) is to be acquired by the private equity group Angelo, Gordon
& co for $296 million, and the company's stockholders will
each receive $16.30 per share.
The terms of the agreement have been approved by the Benihana
board of directors and the price of $16.30 per share represents a
premium 46% percent over the average closing share price for the
30 days ended March 13, 2012 which is the date that the company
publically stated that is was looking into strategic
CEO Richard C. Stockinger said, "This is a win for our growing
base of loyal customers who enjoy our restaurants every day, and
for our future customers in markets hungry for the dramatic,
high-quality Japanese dining that only our brands can deliver.
Our management and restaurant professionals have done a
tremendous job of accelerating and strengthening performance
through our renewal efforts. After evaluating the Company's
strategic alternatives, we are pleased to reach agreement with
Angelo Gordon. We feel that this transaction with Angelo Gordon
recognizes the value of the Benihana brands and delivers a
significant cash premium to the Company's shareholders."
"We believe that partnering with Angelo Gordon will help
Benihana continue its track record of profitable growth, and we
look forward to working with Richard and his team."
The news comes hot on the heels of P.F. Chang's (NASDAQ:
) own foray into private equity, after it was taken private
earlier in the spring.
PFCB announced on Tuesday that the Federal Trade Commission
has granted early termination of the Hart-Scott-Robino waiting
period, which should clear the way for the proposed acquisition
by Wok Acquisition, a newly formed entity wholly owned by
So the question now is, who is next? Who will be acquired
after Benihana and P.F. Chang's? Which restaurants will look
attractive to the big money men?
The Cheesecake Factory (NASDAQ:
) has to be worth a look. The brand is extremely strong, and
there are opportunities for growth as there are still many areas
that don't have a branch nearby. CAKE saw its first-quarter
profit edge up slightly, as it continues to attract more
customers. For the quarter ending April 3, CAKE earned $20.7
million, or 37 cents per share.
Texas Roadhouse (NASDAQ:
) is having a good year so far too, seeing 14% revenue growth in
the first quarter. Like CAKE, it is successfully bringing more
people into its restaurants during a difficult economic climate
with consumer spending down. That would surely look attractive to
Despite the fact that it also has a strong brand name, Red
Robin Gourmet Burgers (NASDAQ:
) might not be quite as ripe for a takeover after its earnings on
May 16 revealed that the company missed estimates on revenues,
although it beat expectations on earnings per share. Still,
compared to the previous year its revenue of $299.5 million was
an increase so it shouldn't be ignored.
Ruby Tuesday (NYSE:
) was downgraded by TheStreet ratings from a Buy to a\a Hold just
a couple of weeks ago, as it continues to underperform. Still,
the brand is strong and it could be seen as bargain buy for
somebody who likes a project.
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