M&A Deal Summary

Golden Gate Capital Acquires Red Lobster

On May 16, 2014, private equity firm Golden Gate Capital acquired restaurant Red Lobster from Darden for 2.1B USD

Acquisition Highlights
  • This is Golden Gate Capital’s 4th transaction in the Restaurants sector.
  • This is Golden Gate Capital’s 4th largest (disclosed) transaction.
  • This is Golden Gate Capital’s 66th transaction in the United States.
  • This is Golden Gate Capital’s 3rd transaction in Florida.
Investment Fate
  • Red Lobster was sold to a publicly-traded strategic buyer in 2020.

M&A Deal Summary
Date 2014-05-16
Target Red Lobster
Sector Restaurants
Buyer(s) Golden Gate Capital
Sellers(s) Darden
Deal Type Divestiture
Deal Value 2.1B USD

Target

Red Lobster

Orlando, Florida, United States
Red Lobster is a seafood restaurant concept operating more than 700 restaurants across the U.S. and Canada and a growing international franchisee footprint. Red Lobster is focused on delivering freshly prepared, high-quality seafood dishes at reasonable prices including an extensive menu featuring fresh fish, shrimp, crab, lobster, scallops, and other seafood and non-seafood options. Headquartered in Orlando, Florida, the Red Lobster team comprises more than 58,000 associates.

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Buyer(S) 1

Buyer

Golden Gate Capital

San Francisco, California, United States

Investor Investor Investor Investor Investor

Category Private Equity Firm
Founded 2000
PE ASSETS 19.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Golden Gate Capital is a large private equity firm focused on buyout and growth equity investments across a wide variety of industries. The Firm partners with management teams to make equity investments in situations where there is a demonstrable opportunity to significantly enhance a company's value. Sectors of interest include software and IT services, semiconductors, electronics, consumer products and retail, financial services, business services, and media. Prospective transaction types include public-to-privates, corporate extractions, bankruptcy auctions, and recapitalizations. Golden Gate Capital was formed in 2000 and is based in San Francisco, California.

DEAL STATS #
Overall 74 of 110
Sector (Restaurants) 4 of 5
Type (Divestiture) 12 of 15
State (Florida) 3 of 5
Country (United States) 66 of 98
Year (2014) 3 of 6
Size (of disclosed) 4 of 23
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-07 Phillips-Medisize

Hudson, Wisconsin, United States

Phillips-Medisize Corp. is a designer and manufacturer of highly engineered finished devices, sub-assemblies, and components that are primarily developed and manufactured for medical end market applications.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2014-05-20 Aeroflex Holding

Plainview, New York, United States

Aeroflex Holding Corp. designs, engineers, and manufactures microelectronic products, and test and measurement equipment in the United States, Europe, the Middle East, and Asia.

Sell $1.5B

Seller(S) 1

SELLER

Darden

Orlando, Florida, United States
Category Company
Founded 1968
Sector Restaurants
Employees177,895
Revenue 10.5B USD (2023)
DESCRIPTION
Entrance to Darden's corporate headquarters in Orlando, Florida.
Entrance to Darden's corporate headquarters in Orlando, Florida.

Darden is a large full-service restaurant company that owns and operates more than 2,100 restaurants. Darden is recognized for a culture that rewards caring for and responding to people. Darden's restaurants includes Olive Garden, LongHorn Steakhouse, Bahama Breeze, Seasons 52, The Capital Grille, Eddie V's and Yard House. Darden was formed in 1968 and is based in Orlando, Florida.

DEAL STATS #
Overall 2 of 2
Sector (Restaurants) 2 of 2
Type (Divestiture) 2 of 2
State (Florida) 1 of 1
Country (United States) 2 of 2
Year (2014) 1 of 1
Size (of disclosed) 1 of 2
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2012-08-29 Yard House USA

Irvine, California, United States

Yard House USA, Inc. is a full service restaurant company. Yard House offers contemporary American cuisine with chef-inspired recipes and ethnic flavors along with a wide range of draft beers and other beverages in a stylish and energetic setting.

Buy $585M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-03-27 Cheddar’s Casual Cafe

Irving, Texas, United States

Cheddar’s Casual Cafe, Inc. is a multi-concept casual dining restaurant company offers appetizers, salads, soups, burgers, sides, sandwiches, steaks, ribs, desserts, and entrees; and beverages, such as sweet tea vodkas, amaretto, lemonades, landslide martinis, spicy mango mojitos, margaritas, and fruit infused teas.

Buy $780M
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