Golden Gate buys Red Lobster restaurant business in $2.1bn cash deal


red lobster seafood crawfishUS buyout house Golden Gate Capital has agreed a $2.1bn cash deal for Darden RestaurantsRed Lobster business.

Darden made the deal in the face of unhappiness from some shareholders that it undervalued Red Lobster.

Golden Gate managing director Josh Olshansky said, “Red Lobster is an exceptionally strong brand with an unparalleled market position in seafood casual dining.

“Red Lobster is exactly the type of company in which we seek to invest given its great brand profile and strong management team.

“We see significant opportunities for future growth by partnering with Kim Lopdrup and the management team to support the long-term success of Red Lobster.”

California-headquartered Red Lobster has more than 700 restaurants across the US, Canada, Japan and the Middle East.

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