NRD Capital Acquires Ruby Tuesday for $335 Million

NRD Capital Acquires Ruby Tuesday for $335 Million

Monday, October 16th, 2017

Ruby Tuesday announced this Monday that it has found a suitor to buy the 599-restaurant bar and grill chain.

Atlanta, Georgia-based private equity firm NRD Capital, a company specializing in franchised and multi-location business investments, will purchase all Ruby Tuesday’s common stock for $2.40 per share in cash—totaling approximately $146 million—and will assume or retire all debt obligations for a total enterprise value of approximately $335 million, excluding transaction expenses.

Aziz Hashim, Founder, NRD

“Our focus at NRD is investing in quality restaurant companies and providing strategic and operational expertise to create sustainable value. With a well-established brand, differentiated from other casual dining restaurants by its Garden Bar, we see significant opportunities to drive value for Ruby Tuesday,” said Aziz Hashim, Founder of NRD, in a press release. “We are excited to be part of the Company’s next chapter.”

According to Ruby Tuesday’s press release, the purchase price represents a premium of approximately 37 percent over Ruby Tuesday's closing share price on March 13, 2017, the day before the Company announced its intention to explore strategic alternatives, and a premium of approximately 21 percent over Ruby Tuesday’s closing share price on October 13, 2017.

Ruby Tuesday restaurant

“As a private company, we will be able to take a long-term view on Ruby Tuesday, allowing us to make…investments in people, product, and customer experience, without public company constraints,” continued Hashim. “This approach will enable us to reward everyone involved in our success, in addition to our investors.”  

Ruby Tuesday’s Board of Directors has already unanimously approved the transaction, though NDR is subject to shareholder approval and other customary closing conditions. The acquisition is expected to be finalized at some point during the first quarter of 2018.

Stephen Sadove, Non-Executive Chairman, Ruby Tuesday

“The Board of Directors and our advisors have thoroughly evaluated all options available to the Company and are confident that this agreement will provide the most promising opportunity to realize the highest value for our stockholders while providing the best path forward for the Ruby Tuesday brand, its employees, franchisees, and loyal customers,” said Stephen Sadove, Non-Executive Chairman of Ruby Tuesday. “NRD Capital has a distinguished track record of achieving and maintaining profitable growth for restaurant concepts and will be an excellent partner to lead Ruby Tuesday going forward.”

Will the acquisition breathe new life into a struggling Ruby Tuesday? Deli Market News will continue to report.

Ruby TuesdayNRD Capital