Golden Gate Capital buys majority stake in Macaroni Grill
San Francisco Business Times
Golden Gate Capital, a San Francisco private equity firm, reached an agreement with Brinker International Inc. to acquire a majority interest in Romano’s Macaroni Grill.
Brinker (NYSE: EAT) will receive $131.5 million in cash, of which $6 million will be contributed to the Golden Gate affiliate making the acquisition.
Brinker will retain a 19.9 percent stake in the brand.
“Brinker International will retain a minority ownership position in order to both maximize the value to Brinker’s shareholders and contribute to the success of Macaroni Grill as a stand-alone entity,” said Doug Brooks, Brinker’s chairman and CEO.
The deal, expected to be done by year-end, occurs as the economic downturn hurts the performance of many casual-dining restaurants.
Brinker expects to take an after-tax charge of $42 million to $47 million on the sale.
Brinker International is among the largest casual-dining restaurant companies. The Dallas company owns or franchises 1,800 restaurants in 24 countries and employs 120,000 people. Brinker restaurants include Chili’s Grill & Bar, On The Border Mexican Grill & Cantina and Maggiano’s Little Italy.
Romano’s Macaroni Grill is a casual Italian restaurant with 220 locations worldwide.
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