Rainforest Cafe owner Landry's to buy McCormick & Schmick's
In a deal valued at $131.6 million, Houston-based Landry’s will buy the seafood chain for $8.75 per share – a 29% premium above the McCormick’s closing price Monday.
The deal is expected to close next month or early next year.
Landry’s already owns Bubba Gump Shrimp Co., Claim Jumper and several hotels and casinos. It will take on the more than 80 restaurants operated by Portland, Ore.-based McCormick -– including McCormick & Kuleto’s in San Francisco and Spenger’s Fresh Fish Grotto in Berkeley.
Landry’s owner Tilman J. Fertitta, who is one of McCormick’s largest shareholders with more than 10% of the outstanding common stock, continued pursuing the seafood chain even after it rejected his initial overture in April.
McCormick, he said in a statement Tuesday, “fell victim to the need to grow and located some restaurants in secondary markets which were adversely impacted to a greater degree by the economic downturn.”
The seafood chain’s net income slipped 10% in the third quarter to $92 million from $102.4 million. Its stock was up nearly 28% in mid-day trading Tuesday to $8.65 a share.
-- Tiffany Hsu
Photo: McCormick & Schmick's