L Catterton To Pay $650M For Del Frisco’s Restaurant Group

This week, Del Frisco’s Restaurant Group, Inc agreed to L Catterton’s acquisition proposal, which is an all cash-transaction valued at roughly $650 million. The Irving, Texas-based franchise, of course, is the parent company of Del Frisco’s Double Eagle Steakhouse and Del Frisco’s Grill, as well as the Barcelona Wine Bar and Bartaco concepts. In the deal, Del Frisco’s Restaurant Group stockholders will receive $8 per share.

In a press release, Del Frisco’s Restaurant Group Committee Chairman Joe Reece commented that while reviewing the proposal, the team evaluated a “full range of strategic, financial, and capital structure alternatives” that would serve the best interests of their stockholders.

Del Frisco’s board of directors chairman Ian R. Carter also notes that the Board consulted with a handful of outside advisors in order to more accurately evaluate which strategic and financial alternatives would suit their goals.  “This transaction” he says, “offers immediate liquidity at a significant premium for our stockholders while providing the best path forward for our Del Frisco’s brands, our employees, and loyal guests.”

Reece reiterates that the thorough process included great scrutiny over both Del Frisco’s current operations as well as future prospects. And it is with this deep analysis that both the committee and the board of directors are confident that the transaction will offer the most promise for everyone. 

On the other side of this transaction, L Catterton managing partner Andrew Taub expresses that they have the capital necessary to “bring significant operational expertise” to any investment.  Taub goes on to say, “Over the last 30 years, L Catterton has invested in nearly 30 restaurant concepts globally to create a number of industry leaders.” 

He relates that Del Frisco’s Restaurant Group, Inc has four extraordinary brands spanning two distinct and attractive food service categories: upscale regionally-inspired cuisine, and steak and grill.

At the end of the day, the $650 million price tag represents a premium of 22 percent over the Del Frisco’s Restaurant Group, Inc’s closing price on December 19 of last year.  This is the day before the company made the original announcement in search of investors.  The stock had temporarily frozen, but was recorded up as high as 17.24 percent on Monday.