October 17, 2017
Atlanta-based NRD Capital is acquiring all of Ruby Tuesday’s common stock for $2.40 per share in cash. The private equity firm will assume or retire all debt obligations for roughly $335 million. The restaurant chain includes 599 Ruby Tuesday restaurants in 41 states, 14 foreign countries, and Guam.
Ruby Tuesday reported total revenue declined 15.3% during the first quarter of fiscal 2018,and its adjusted net loss was $0.01 per diluted share. The purchase price represents a premium of roughly 37% over Ruby Tuesday’s closing share price before the company announced it would explore strategic alternatives, and a premium of roughly 21% over the closing share price on October 13, 2017.
Ruby Tuesday’s Board of Directors and NRD unanimously approved the deal, which is subject to shareholder approval. The acquisition is expected to be completed during Q1 2018. UBS Investment Bank is serving as financial advisor to Ruby Tuesday.
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