Del Frisco’s Restaurant Group (NASDAQ:DFRG) stock is soaring today on news of a buyout offer.
Del Frisco’s Restaurant Group says that L Catterton is planning to take the company private through a buyout. This will have affiliates of of L Catterton making an offer of $8.00 per share for DFRG stock. The total value of this deal is roughly $650 million.
L Catterton notes that its offer of $8.00 per share for DFRG stock is a 22% premium over the stock’s closing price on Dec. 19, 2018. This was the last day of trading before Del Frisco’s Restaurant Group announced plans to consider strategic alternatives.
The offer from L Catterton is also a 21% premium over the 30-day volume weighted average price for DFRG stock on Friday. It is also an 18% premium to the closing price of the stock on that day.
L Catterton will need approval from regulators and shareholders before it can close the deal. Engaged Capital and some of its affiliates are already committing their 10% stake in DFRG stock in favor of the deal. If all goes well, the Del Frisco’s Restaurant Group and L Catterton are expecting the deal to reach completion by the the fourth quarter of 2019.
L Catterton is an investment firm that has taken an interest in several restuarant chains in the past. This includes Bloomin Brands (NASDAQ:BLMN), P.F. Chang’s, Cheddar’s Scratch Kitchen and more.
DFRG stock was up 16% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.