Tilman Fertitta, Ceo of Landry’s Inc., has announced that the company has agreed to purchase Morton’s Restaurant Group, of which Fertitta is already the largest single stockholder with over 5% of the outstanding common stock. Landry’s, the privately held hospitality and entertainment company, will acquire Morton’s for about $117 million or about $6.90 per share.
The transaction will be financed through a combination of cash and debt. With the news, Morton’s stocks gained over 32 percent. Morton’s operates over 70 restaurants in 26 states, as well as six international locations, and generates around $300 billion in annual revenue.
The all cash tender and merger is scheduled to commence 10 business days from Friday. Prior to the offer Fertitta had formed Fertitta Morton’s Restaurants and Fertitta Morton’s Acquisitions. This allowed Fertitta to enter the transaction and acquire Morton’s.
These companies, newly formed, are affiliates of Landry’s Inc. Fertitta states, “Morton’s has built an iconic worldwide restaurant brand and we welcome the Morton’s Restaurant Group into the Landry’s family.” The offer is still subject to conditions. The tendering of, at least, a majority of the outstanding shares calculated at a diluted basis. The deal in tentatively set to close in early February 2012.
Fertitta is no stranger to increasing company stock and restaurant success. Landry’s came into being in 1980 in Katy, Texas. Landry’s currently operates more than 30 restaurants, the Rainforest Café and Bubba Gump Shrimp Co. among the most popular. In addition, the company owns several hotels and casinos in Las Vegas and Laughlin, Nevada.
The Fertitta family is somewhat well-known in the casino ownership business, as his cousins, Frank Fertitta III and Lorenzo Fertitta are the owners of Station’s Casino in Las Vegas. The Houston-based Landry’s recently made news for the purchase of famed seafood restaurant chain McCormick & Schmick’s Seafood Restaurant. Fertitta purchased that chain for $131 million.
Steak lovers should be able to relax a little. It is hoped, by Morton’s faithful that not much will change with regards to the food and service at the restaurant chain. Fertitta has stated that he does plan to introduce some new items on the Morton’s menu. The world famous, large, succulent steaks at the restaurant will remain just as delicious and juicy however. This is good news for the thousands that frequent the restaurant chain on a daily basis.