Utah People's Post

The Latest News from the Beehive State

Saturday, January 16, 2021
Log in
  • National News
    • Female Caseworker Killed & Doctor Shot in Philadelphia
  • State News
    • Car Chase Leads to Drug Arrest
  • Tech & Science
  • Health
    • How to Prepare For Ticks Season
    • Magical Weight Loss Bean Scam
  • Sports
  • Business
You are here: Home / Business / Darden Restaurants seals USD 2.1 bn Red Lobster deal with Golden Gate Capital

Darden Restaurants seals USD 2.1 bn Red Lobster deal with Golden Gate Capital

Posted by

Private equity firm Golden Gate Capital is going to buy seafood chain Red Lobster for USD 2.1 billion, Darden Restaurants said.

Darden Restaurants had put Golden Gate Capital, its oldest but worst performing segment, on sale in December.

Darden also includes Olive Garden, LongHorn Steakhouse, Bahama Breeze, Capital Grille and Seasons 52.

According to the company, the deal will get about USD 1.6 billion in cash after tax and transaction deductions from the deal. Rest of the money i.e. USD 1 billion will be used to pay off debts.  The remaining USD 600 million or less will make up the bulk of a 2015 share buyback program.

Market analysts say the decision will also allow the company to maintain its 55 cent quarterly dividend.

While revealing its plan, the company said in a statement, “The initial plan was to create two independent companies but after considering a number of structures — ranging from selling to a strategic partner to giving up the real estate assets while holding onto the brand — we decided the Golden Gate deal would create the most value.”

85c35b45fa90478f378a81dab35057b9-e1400248110962

“Over the past months, we have had extensive conversations with our shareholders about Darden and the Company’s strategic direction. By enabling us to bolster the Company’s financial foundation and increase our focus on the Olive Garden brand renaissance program, we believe this agreement addresses key issues that our shareholders have raised, including the need to preserve the Company’s dividend and regain momentum at Olive Garden,” Darden CEO Clarence Otis said in a statement.

The Golden Gate Capital is, however, optimistic about the decision but Managing Director Josh Olshansky said, ”Red Lobster is an exceptionally strong brand with an unparalleled market position in seafood casual dining. Red Lobster is exactly the type of company in which we seek to invest given its great brand profile and strong management team.”

Recently, Golden Gate hit the headlines for its involvement in a planned merger of Zale, parent company of diamond stores Zales, with Signet Jewelers owner of Kay Jewelers and Jared the Galleria of Jewelry.

Share this:

  • Tweet
  • Share on Tumblr
  • Email

Filed Under: Business Tagged With: Darden Restaurants, Golden Gate capital, Red Lobster

Woman working out at the gym

Just 23% of Americans Are Working Out Enough in Their Spare Time

By

Poliovirus Therapy Gives Brain Cancer Patients New Hope (Study)

By

United Airlines airplane

Passenger Mysteriously Dies on United Airlines flight Bound for Boston

By

Breakfast sandwich

Here Are Some Foods No Nutritionist Would Ever Eat

By

Poppy flower

UN Warns of Surge in Opium-based Drugs and Cocaine Supply

By

U.S.-Canada border

French Jogger Detained 2 Weeks for Accidentally Crossing Border

By

Plus size model

Normalizing Plus Size Could Fuel Obesity Crisis (Study)

By

Giant manta ray

Unique Manta Ray Nursery Spotted off Texas Coast

By

The rainbow flag

WHO Scraps Transgenderism from List of Mental Illnesses

By

456 People Dead at U.K. Hospital after Taking too Many Painkillers

By

Kenyan girls dancing

Kenyans Facing Poor Nutrition as Supermarket Shopping Is on the Rise

By

Pages

  • About
  • Contact
  • Privacy Policy GDPR
  • Staff
  • Terms and Conditions

Recent Posts

  • Just 23% of Americans Are Working Out Enough in Their Spare Time
  • Poliovirus Therapy Gives Brain Cancer Patients New Hope (Study)
  • Passenger Mysteriously Dies on United Airlines flight Bound for Boston
  • Here Are Some Foods No Nutritionist Would Ever Eat
  • UN Warns of Surge in Opium-based Drugs and Cocaine Supply
  • French Jogger Detained 2 Weeks for Accidentally Crossing Border
  • Normalizing Plus Size Could Fuel Obesity Crisis (Study)

Related Articles

  • Passenger Mysteriously Dies on United Airlines flight Bound for Boston

  • Fishing boat in the Atlantic Ocean

    U.S. Seafood Dealer Lied About Fish Being Caught in U.S.

  • Tesla car on the road

    Tesla’s Autopilot Software To ‘Nag’ Drivers to Keep Hands on Wheel

  • Mexico Slaps Tariffs on U.S. Steel, Pork, and Bourbon

  • Dairy cows on a pasture

    Kentucky Milk Plant Closes after Losing Contract with Walmart

  • Tesla founder Elon Musk

    Elon Musk Upset About Latest Tesla Crash Being ‘Front Page News’

  • Orange juice bottles on Whole Foods shelves

    Amazon to Roll Out New Prime Perks for Whole Foods Shoppers

  • U.S. Liquor Store

    Alcohol Sales on Sunday No Longer Banned in Indiana

  • Bitcoin coins on 100-dollar bills

    Iran Unveils Its First National Cryptocurrency

  • Transavia Airlines plane taking off

    Man on Plane who Wouldn’t Stop Farting Causes Emergency Landing

Categories

  • Business
  • Entertainment
  • Health
  • National News
  • Nature
  • Provo
  • Salt Lake News
  • Science
  • Sports
  • State News
  • Tech & Science
  • Technology
  • Uncategorized
  • West Jordan
  • West Valley City
  • World

Copyright © 2021 utahpeoplespost.com

About · Privacy Policy · Terms of Use · Site Map · Contact

loading Cancel
Post was not sent - check your email addresses!
Email check failed, please try again
Sorry, your blog cannot share posts by email.
This website uses cookies to ensure you get the best experience on our website. Learn more.