Darden Restaurants Inc., which operates chains such as Olive Garden and Red Lobster, has acquired Yard House USA Inc., owner of the Yard House restaurant chain, for $585 million.
The all-cash transaction is expected to close by early second-quarter 2013. Yard House, with two locations in Las Vegas at Red Rock Resort and Town Square, is known for its classic rock theme, American cuisine and large selection of craft and specialty beers.
Yard House will become part of Darden’s Specialty Restaurant Group, which includes The Capital Grille, Bahama Breese and Eddie V’s, the company said in a statement. Darden acquired Yard House from San Francisco private equity firm TSG Consumer Partners LLC, which bought a 70 percent stake in the chain in 2007.
“With this addition, Darden’s Specialty Restaurant Group will have nearly $1 billion in annual sales,” Clarence Otis, chairman and CEO of Orlando, Fla. -based Darden, said in a statement Thursday.
Otis expected the specialty division “to sustain annual sales growth of 15 percent to 20 percent for years to come.”
Yard House, which operates 39 locations in 13 states, had sales of $262 million last year. Darden anticipates the deal will add 3 to 5 cents to its current fiscal year’s earnings.
Contact reporter Chris Sieroty at firstname.lastname@example.org or 702-477-3893.