Darden Restaurants Inc., the company that owns several chains that operate in Northeast Florida, is adding another.
The company announced July 17 it reached an agreement to acquire Chuy’s Holdings Inc., parent of the Chuy’s Tex-Mex chain, in an all-cash deal worth about $605 million.
Chuy’s has one location in Jacksonville in The Strand at Town Center at 4914 Town Center Parkway. It opened in 2017.
Darden said it would acquire Chuy’s shares for $37.50 each. That represents a 40% premium to Chuy’s 60-day volume-weighted price. Chuy’s stock closed July 17 at $25.27 per share. Darden stock closed July 17 at $147.35 per share.
Darden President and CEO Rick Cardenas said Chuy’s has 7,400 team members.
“Chuy’s is a differentiated brand within the full-service dining industry with strong performance and growth potential,” Cardenas said in a news release.
“Based on our criteria for adding a brand to the Darden portfolio, we believe Chuy’s is an excellent fit that supports our winning strategy.”
Orlando-based Darden operates multiple chain restaurants, including several in the region.
Its brands include Olive Garden, LongHorn Steakhouse, Yard House, Ruth’s Chris Steak House, Cheddar’s Scratch Kitchen, The Capital Grille, Seasons 52, Eddie V’s and Bahama Breeze.
In Northeast Florida there are nine LongHorns, four Olive Gardens, two Ruth’s Chris and one each of the Cheddars, Capital Grille, Seasons 52 and Bahama Breeze restaurants.
The Daily Record reported in 2023 that Eddie V’s was exploring a location in Ponte Vedra Beach. The Olive Garden chain is looking at a fifth location in Glen Kernan Park, the residential and commercial development at northwest Butler and Hodges boulevards in South Jacksonville.
The only Darden concept without an area presence is Yard House. The closest is in Orlando.
Founded in Austin, Texas, in 1982, Chuy’s has 101 restaurants in 15 states, For the 12 months ending March 31, it generated total revenue of more than $450 million with an average annual restaurant volume of $4.5 million.
The Wall Street Journal says Darden has about 190,000 employees across 1,900 restaurants and reported about $11.4 billion in revenue in its last fiscal year.
“Darden shares many of our same core values, particularly our operating philosophy and strong team member cultures,” Chuy’s Chairman and CEO Steven Hislop said in the release.
“Together we will accelerate our business goals and bring our authentic, made-from-scratch Tex-Mex to more guests and communities.”
Darden said it expects the transaction to close by its fiscal second quarter, which concludes at the end of November.