Darden Restaurants, Inc. (DRI, Financial), a leading player in the restaurant industry, has successfully completed its acquisition of Chuy’s Holdings, Inc., as announced on October 11, 2024. This strategic move follows the Agreement and Plan of Merger dated July 17, 2024, involving Darden, Chuy’s, and Cheetah Merger Sub Inc., a wholly-owned subsidiary of Darden.
Under the terms of the merger, Chuy’s has become an indirect, wholly-owned subsidiary of Darden. Each share of Chuy’s common stock was converted into the right to receive $37.50 in cash, resulting in an aggregate transaction value of approximately $660 million. This includes payments to holders of Chuy’s restricted stock units (RSUs), which were fully vested and converted into cash as part of the merger process.
The acquisition was financed through Darden's recent offerings of senior notes, specifically a $400 million offering at 4.350% due in 2027 and a $350 million offering at 4.550% due in 2029, issued on October 3, 2024. This financial strategy underscores Darden's commitment to expanding its portfolio and enhancing shareholder value through strategic acquisitions.
The completion of this merger marks a significant milestone for Darden, as it integrates Chuy’s into its diverse range of restaurant brands, potentially unlocking new growth opportunities and synergies within the industry.
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