Ruby Tuesday on Monday said it was to be bought out by the private-equity firm NRD Capital, following four straight years of declining sales.
NRD Capital will acquire the casual-dining chain for $2.40 a share in cash and assume or retire all its debt obligations for a total enterprise value of about $335 million, excluding the transaction costs. Ruby Tuesday’s stock jumped premarket above the acquisition price, by 23% to as much as $2.44 a share.
The companies expect the deal to close in the first quarter of 2018. Ruby Tuesday had announced in March that it was looking into other ways to revive its business, including a sale or merger.
“With a well-established brand, differentiated from other casual dining restaurants by its Garden Bar, we see significant opportunities to drive value for Ruby Tuesday,” Aziz Hashim, the founder of NRD, said in a statement.
Ruby Tuesday also announced first-quarter results on Monday, with a narrower net loss from a year ago of $9.8 million, or $0.16 a share. Sales at restaurants open for at least one year fell 5.8%.
- Markets Insider