Published: Tue, October 17, 2017
Finance | By Loren Pratt

Ruby Tuesday to be purchased by Atlanta-based private equity firm

Ruby Tuesday to be purchased by Atlanta-based private equity firm

On Monday, restaurant chain Ruby Tuesday announced that it will be acquired by private-equity firm NRD Capital for $2.40 per share in cash, representing a total enterprise value of about $335 million.

The private-equity firm NRD Capital will pay $2.40 for each share of Ruby Tuesday, a 21 percent premium from its closing price of $1.99 on Friday. It will also assume or retire all of Ruby Tuesday's debt obligations.

(+) LBIX, (+31.4%) Reports non-GAAP fiscal Q2 net loss of C$0.25 per share, paring a C$0.33 per share adjusted net loss during the same quarter past year.

The company decided a sale to NRD was "the most promising opportunity to realize significant, immediate value for our shareholders and the best path forward for the Ruby Tuesday brand", Stephen Sadove, non-executive chairman of Ruby Tuesday, said in a statement.

5, Ruby Tuesday operated 599 restaurants in 41 states, 14 foreign countries, and Guam, of which 541 were company-owned and 58 were franchises. The transaction is expected to close by the first quarter of 2018 and is subject to customary closing conditions.

Ruby Tuesday, which has suffered losses and declining sales for the last five years as fewer diners visited its restaurants, said in March it was exploring strategic alternatives. As Food Newsfeed reports, it has closed more than 100 restaurants over the past year as part of a turnaround effort that also includes implementing new initiatives such as an expanded garden bar, a new mobile app, and a simplified lunch menu. It has invested in other chains as well.

Ruby Tuesday sales at restaurants open for at least one year fell 5.8 percent.

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