SPB Hospitality and Fertitta Entertainment have both recently filed agreements to acquire major U.S. restaurants.
Houston, Texas-based SPB Hospitality, which operates Logan’s Roadhouse, Rock Bottom Restaurant & Brewery, and other restaurants, will acquire J. Alexander’s Holdings for around USD 220 million (EUR 186 million) in cash.
Alexander’s operates J. Alexander’s Restaurant, Redlands Grill, Stoney River Steakhouse and Grill, and other restaurants.
“The merger transaction will provide liquidity at a significant premium for our shareholders while providing a home for our concepts, our employees, and our loyal guests with SPB Hospitality,” J. Alexander’s President and Chief Executive Officer Mark A. Parkey said in a press release.
The merger was approved by J. Alexander’s board of directors following a review of a wide range of strategic alternatives, first announced in August 2019, and continued in 2020 and 2021.
Meanwhile, Fertitta Entertainment, Inc., the parent company of Golden Nugget/ Landry’s, amended its previous merger agreement with FAST Acquisition Corp., a special purpose acquisition company co-headed by Doug Jacob and Sandy Beall.
According to the amendment, the company has agreed to contribute certain operating businesses not originally included as part of the business combination with FAST, for no additional debt. Businesses that will now be contributed to the public company include the Mastro's brand, the Aquariums, the Pleasure Pier, Vic and Anthony's, and a handful of smaller restaurant concepts, adding a total of 4 business assets, Fertitta said in a press release.
In addition, Fertitta will enter into a transaction to acquire the Catch restaurants, including Catch Steak. The restaurant group is already 50 percent owned indirectly by Fertitta Entertainment owner Tilman J. Fertitta.
"The addition of Mastro's and the destination entertainment businesses provide tremendous cash flow and growth opportunities to the company and we are excited that Tilman is contributing the new assets to the company," FAST’s Jacob said. "These brands create an even stronger portfolio to leverage for potential future acquisitions.”
Fertitta operates several seafood-focused restaurant chains, including Morton’s The Steakhouse, Bubba Gump Shrimp Co., The Oceanire, and McCormick & Schmick's Seafood and Steaks.
After the revised transaction, Fertitta Entertainment will be one of the largest publicly-traded hospitality companies, with five land-based casinos and substantial ownership of Golden Nugget Online Gaming. The company also operates more than 500 restaurants, amusements, hotels, entertainment venues, and other business units across 38 states, the District of Columbia, Puerto Rico, Hong Kong, mainland China, Mexico, and Singapore.
