Landry’s acquires McCormick & Schmick’s
Landry’s Restaurants on Tuesday announced that it has agreed to acquire a 100 percent interest in McCormick & Schmick’s Seafood Restaurants for about USD 131.6 million. That’s USD 8.75 a share in cash, a 30 percent premium to the stock’s closing price on Monday.
This announcement comes about seven months after the McCormick & Schmick’s board unanimously thwarted an unsolicited buyout offer from company shareholder Tilman Fertitta, who’s also chairman, president and CEO of Houston-based Landry’s. Fertitta had offered to pay USD 9.25 a share.
“Our board and management team have been highly focused on enhancing value for our stockholders, and we believe that our agreement with Landry’s provides for a fair price and substantial and immediate cash value to our stockholders,” said McCormick & Schmick’s CEO Bill Freeman. “Landry’s is one of the premier restaurant companies in America and this presents a great opportunity for our employees.”
“I am excited knowing that our restaurants will continue to be operated in the same stellar fashion that our customers have come to expect throughout the years. Our legacy is in good hands,” added McCormick & Schmick’s Chairman and co-founder Douglas Schmick.
Based in Portland, Ore., McCormick & Schmick’s has more than USD 300 million in annual revenues and operates more than 80 upscale seafood restaurants in 26 U.S. states and Canada.
“As a public company, McCormick & Schmick’s fell victim to the need to grow and located some restaurants in secondary markets which were adversely impacted to a greater degree by the economic downturn. However, Landry’s size, strength and financial resources will positively accelerate the future for McCormick & Schmick’s,” said Fertitta.
Landry’s operates several casual and upscale seafood chains, including Landry’s Seafood House, The Chart House, Bubba Gump Shrimp Co. and Oceanaire Seafood Room.
Click here to read SeaFood Business Associate Editor James Wright’s profile on Fertitta, which ran in the January issue.