Olive Garden parent Darden Restaurants Inc. DRI said Wednesday it’s acquiring Ruth’s Hospitality Group Inc. RUTH, owner of Ruth’s Chris Steak House, in an all-cash deal valued at $715 million. Under the terms of the deal, Darden will pay $21.50 a share for each Ruth’s share owned, equal to a 34% premium over its closing price on Tuesday and a 32% premium over its 30-day volume weighted average price. Darden, which also owns LongHorn Steakhouse, Yard house and The Capital Grille, is expecting the deal to boost per-share earnings by 10 cents to 12 cents by fiscal 2024. Ruth’s was founded in 1965 in New Orleans and had revenue of more than $500 million in fiscal 2022. The deal is expected to close in June. Cheryl Henry will remain president of Ruth’s Chris and report to Darden CEO Rick Cardenas. Darden stock was down 0.6% premarket.
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