Landry’s Restaurants, Inc. (LNY) has announced today that it has sent a letter to Smith & Wollensky Restaurant Group, Inc. (SWRG) offering to acquire Smith & Wollensky Restaurant Group for $7.50 per share in cash. This offer represents an approximate 50% premium to the most recent market price of $5.03.
This would add the following to the Landry’s machine: Smith & Wollensky Restaurants in Las Vegas, Chicago, Miami Beach, Houston, Boston, Philadelphia, Washington, D.C., and Columbus, Ohio. It also operates 6 restaurants in New York City, including Maloney & Porcelli’s, the Post House, Park Avenue Cafe, Quality Meats, and the original Smith & Wollensky restaurant.
If you will look back to when Lone Star Steakhouse announced that it was going private, this was one of the other names in the group we speculated could be acquired and could be better run by a newer team. Outback Steakhouse’s parent OSI Restaurant (OSI) was also part of that list, and that is just about to go private in a management buyout.
Jon C. Ogg
January 16, 2007
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