US foodservice group Landry’s Restaurants Inc has agreed to acquire all 38 Chart House and one Peohe’s restaurant from beleaguered company Chart House Enterprises Inc.
Landry’s will pay US$45.5m for the 39 eateries. While it will assume limited working capital liabilities with the purchase, Landry’s will not assume any existing Chart house bank or subordinated debt.
The move prompted the group to hike its earnings forecasts for next year, while shares in Landry’s rose 1.4% to 35 cents to US$25.40.
“It looks like the acquisition plays right into (Landry’s) strengths: some high-profile locations, a business that has not been run optimally and an attractive price,” said Barry Stouffer, an analyst at BB&T Capital Markets of Richmond, Virginia.
Houston, Texas-based Landry’s, operates 213 seafood outlets nationwide under Landry’s Seafood House, Joe’s Crab Shack and other names. The group said the waterfront locations of the Chart House proved a key factor for the acquisition.