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Darden Restaurants will acquire Chuy’s Holdings for approximately $605 million in cash, the companies announced jointly on Wednesday.
Darden agreed to acquire all outstanding shares of Chuy’s at $37.50 per share, according to a press release. The Tex-Mex restaurant chain joins Darden’s portfolio that 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 their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category.”
Chuy’s generated total revenues of over $450 million in its latest 12 months ended March 31, according to the release. The company, founded in Austin, Texas, in 1982, has 101 restaurants in 15 states.
Cardenas said in the press 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,” Chuy’s CEO Steven Hislop said in a statement.
Darden expects the transaction to be completed in their fiscal second quarter, according to the release.