Darden Restaurants said Wednesday it is buying the Tex-Mex chain Chuy’s to expand its dining options.
Darden, the parent company of Olive Garden, LongHorn Steakhouse, Yard House, and other chains, said it will spend approximately $605 million on the deal.
"Chuy's is a differentiated brand within the full-service dining industry with strong performance and growth potential," said Darden President and CEO Rick Cardenas. "Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy's is an excellent fit that supports our winning strategy. I am excited to welcome their 7,400 team members to Darden and diversify the Darden portfolio into a new dining category."
Darden will acquire all outstanding shares of Chuy’s for $37.50 per share. Those shares closed at $25.27 apiece on Wednesday.
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Chuy’s Holdings Inc. was founded in 1982 in Austin. It now operates 101 restaurants in 15 states and has 7,400 employees.
Darden, based in Orlando, Florida, operates more than 1,900 restaurants and has 190,000 employees.
