Chuy's surges after Olive Garden parent Darden agrees to buy company

Chuy's Holdings

17/07/2024 22:46

** Shares of full-service restaurant operator Chuy's
Holdings  CHUY.O  up 47.1% at $37.16 in extended trading
    ** Darden Restaurants  DRI.N , owner of the Olive Garden
chain, agrees to buy CHUY in an all-cash deal with an enterprise
value of $605 million
    ** DRI will acquire all of CHUY's outstanding shares for
$37.50/shr in cash, which represents a 48.4% premium to stock's
last closing price
    ** The companies expect the deal, which is approved by their
boards, to close in Darden's fiscal Q2
    ** Shares of Darden were down 1.6% at $145.01 in after-hours
trading
    ** As of last close, CHUY's stock had fallen ~34% YTD, while
DRI's dropped over 10% during the same period

 (Reporting by Granth Vanaik in Bengaluru)
 ((Granth.Vanaik@thomsonreuters.com; Twitter: https://twitter.com/Vanaik_Granth;))