|View printer-friendly version|
|Ruth's Chris Steak House, Inc. Completes Acquisition of Mitchell's Fish Market & Cameron's Steakhouse|
HEATHROW, Fla.--(BUSINESS WIRE)--Feb. 19, 2008--Ruth's Chris Steak House, Inc. (Nasdaq: RUTH) today announced that it has completed its acquisition of all the operating assets and intellectual property of Columbus, Ohio based Mitchell's Fish Market, which operates under the names Mitchell's Fish Market and Columbus Fish Market. The acquisition also includes Cameron's Steakhouse which operates under the names Cameron's Steakhouse and Mitchell's Steakhouse. The operating assets and intellectual property were purchased from Cameron Mitchell Restaurants LLC (CMR) for approximately $92.0 million which Ruth's Chris Steak House funded through its senior credit facility. The acquisition is expected to be accretive to the Company's shareholders in its first full year post-acquisition.
Craig S. Miller, Chairman of the Board, President and CEO of Ruth's Chris Steak House, Inc. stated, "We are very pleased to have closed this transaction, which represents a meaningful entry into the fresh seafood restaurant market. Mitchell's Fish Market's upscale casual focus and contemporary atmosphere is a wonderful complement to our own flagship brand, and further balances our portfolio by serving as a secondary growth vehicle. As stated previously, we intend to operate Mitchell's Fish Market as a distinct entity, but will offer our brand management and development expertise to support the Mitchell's operations team as they expand nationally. We are very excited for everyone involved and above all else, we welcome all of our new team members and associates to the Ruth's Chris family."
Damon Liever, former Senior Vice President of Marketing for Ruth's Chris Steak House, will assume the role of President of the new Seafood Division. Damon brings over twenty years of restaurant and foodservice brand experience and was most recently President of Retail Brand Group, LLC, a subsidiary of Sodexho, Inc.
In conjunction with the completion of the acquisition, the Company has amended and restated its existing credit facility to increase the revolving loan commitment to $250.0 million. The amended and restated credit facility continues to provide for an increase in the revolving loan commitment by an additional $50.0 million at the company's request (for a total commitment of $300.0 million) and allows for up to $50.0 million in stock repurchases based upon overall leverage ratio. This amendment and restatement is to the credit facility the company completed on September 27, 2005, and is with Wells Fargo Bank, N.A. as administrative agent and co-lead arranger, Bank of America, N.A., as syndication agent and co-lead arranger, and JP Morgan Chase Bank, N.A. and Wachovia Bank, N.A. as co-documentation agents. Management intends to use the facility to fund the acquisition, working capital needs, expansion and potential future franchise acquisitions.
About Ruth's Chris Steak House
Ruth's Chris Steak House, Inc. is the largest fine-dining steakhouse company in the U.S., as measured by the total number of company-owned and franchise-owned restaurants, and has 119 locations worldwide. Founded in New Orleans by Ruth Fertel in 1965, Ruth's Chris specializes in USDA Prime grade steaks served in Ruth's Chris signature fashion ... "sizzling."
To experience fine dining at its prime ... just follow the sizzle to Ruth's Chris Steak House. For information, reservations, or to purchase gift cards, visit www.RuthsChris.com or call 1-800-544-0808.
Ruth's Chris Steak House, Inc. also owns Mitchell's Fish Market, which operates under the names Mitchell's Fish Market and Columbus Fish Market, an award-winning, upscale casual seafood restaurant and bar recognized for its high quality food, contemporary dining atmosphere, and excellent service, with 19 locations, and Cameron's Steakhouses, which operate under the names Cameron's Steakhouse and Mitchell's Steakhouse, a sophisticated 21st century update of the upscale American steakhouse, with three locations. For information, reservations, or to purchase gift cards, visit www.MitchellsFishMarket.com, www.MitchellsSteakhouse.com and www.Camerons-Steakhouse.com
Some of the statements in this release that are not historical facts and relate to future results and events, including, without limitation, statements regarding the accretion of the Mitchell's acquisition are "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon our current beliefs and expectations and involve risks and uncertainties. Actual results may vary materially from those contained in forward-looking statements based on a number of factors including, without limitation, the risks identified as "risk factors" in our 2006 annual report filed on Form 10-K and the other factors identified from time to time in our filings with the Securities and Exchange Commission, all of which are available at www.sec.gov. Investors should take these risks into account when making investment decisions. Shareholders and other readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. We undertake no obligation to update any forward-looking statements.
CONTACT: ICR Investor Relations: Tom Ryan, 203-682-8200 email@example.com or Raphael Gross, 203-682-8200 firstname.lastname@example.org or Media: Alecia Pulman, 203-682-8259 email@example.com SOURCE: Ruth's Chris Steak House, Inc.