The Gandy Dancer headed back to private ownership in $1.2B deal
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One of Ann Arbor's signature restaurants appears headed for an ownership change as owner Landry's Restaurants Inc. accepts an offer by its CEO to buy the company.
The $1.2 billion cash deal includes all of the Houston-based company's 175 restaurants in 27 states. Among them: The Gandy Dancer, based on Depot Street in a historic former train depot.
The deal was announced Tuesday, and still needs approval by shareholders.
Landry's is the nation's second largest restaurant chain. It's properties include the Rainforest Cafe, Big Fish, Meriwethers and Charley's Crab.
According to company filings, revenue fell in the second quarter to $282 million from $308 million. Income fell in the second quarter to $8.3 million from $14 million.
Many of the Michigan-based operations are in the company's Muer Seafood Restaurants group, reflecting previous ownership.
With the sale, Landry's president and CEO Tilman J. Fertitta will pay $14.75 per outstanding share of stock. Reports say that is a 37 percent premium over Monday's closing price of $10.76.
Read more about the details of the deal here.
And here's a report from the Grand Rapids Press on the deal.
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Hope the guy knows what he's doing. According to those numbers, the average restaurant isn't very profitable for the money they're taking in. I guess he's betting on people heading back soon to pricey restaurants. I hope he's right. I really like the Gandy.
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Posted Nov 4 2009
Here's the Reuters link:
http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=LNY×tamp=20091104193400
If I read it right, this deal is contingent on refinancing the current debt of the organization and financing a new $550 million in "senior secured debt securities issued in a private placement not registered under the U.S. Securities Act of 1933".
AnnArbor.com Staff
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Posted Nov 4 2009
One of my favorite local restaurants. Hope this does not adversely impact the business.
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Posted Nov 4 2009