CEO Fertitta Takes Landry's Restaurants Private

By

SeafoodSource staff

Published on
June 16, 2008

Landry's Restaurants yesterday announced it agreed to allow CEO Tilman Fertitta to acquire the remaining 61 percent stake in the Houston-based restaurant and hospitality company.

Under the terms of the deal, Fertitta Holdings Inc. will buy Landry's for $21 per share in cash.

Fertitta submitted his original bid of $23.50 per share in late January and lowered the offer in April, citing the deteriorating credit market.

To fund the deal, Fertitta received debt financing commitments from Jefferies Funding LLC, Jefferies & Co., Jefferies Finance LLC and Wells Fargo Foothill LLC.

As of May 6, Landry's had 16.1 million shares outstanding. The deal is valued at about $415 million, plus about $885 million in debt, for total consideration of $1.3 billion.

The deal also includes a "go-shop" provision that allows the company to actively solicit better acquisition proposals from third parties for about 45 days after the agreement is signed.

The transaction is expected to be completed in about four months.

Shares jumped $2.85, or 17 percent, to $19.64 in morning trading.

Landry's, which went public in 1993, operates several national restaurant chains, including Landry's Seafood House and Chart House, and hotels, such as the Golden Nugget hotel-casinos in Las Vegas and Laughlin, Nev. Last October, Landry's sold its casual seafood chain, Joe's Crab Shack, to a private equity firm for $192 million.

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