Red Lobster Seafood acquired by Golden Gate Capital

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV $1–10bn

Context

Golden Gate Capital completed its acquisition of Red Lobster Seafood Co. from Darden Restaurants. The transaction followed a robust competitive process and closed on July 28, 2014, with Red Lobster transitioning to private ownership under Golden Gate. Darden pursued the divestiture to sharpen focus on higher-return opportunities like the Olive Garden renaissance, eliminate Red Lobster's volatility, and validate real estate valuations. For Golden Gate, the deal represented a platform investment in a brand with unparalleled awareness and leadership in casual seafood dining. The buyer committed to supporting CEO Kim Lopdrup's vision of delivering great seafood, people, and results through expansion and customer delight.

Red Lobster Seafood, which reported an EBITDA margin of [members only] in 2014, is valued in this transaction at an EV/EBITDA multiple of 5x–12x.

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Target

Red Lobster Seafood Co. operates as a casual dining seafood restaurant chain headquartered in Orlando, Florida, United States. The company specializes in freshly prepared seafood dishes including shrimp, lobster, crab, fish, and shellfish served in a family-friendly environment. Founded in 1968, Red Lobster has established itself as an iconic brand with broad consumer recognition and a loyal customer base seeking value-oriented seafood experiences. Red Lobster occupies a unique niche within casual dining, focusing exclusively on seafood to differentiate from generalist competitors. Its positioning emphasizes approachable premium offerings, positioning it as a leader in the seafood sub-segment. The business model encompasses both company-operated and franchised locations, generating revenue primarily from restaurant sales with supplementary franchise royalties.

Ent. Value

$1–10bn

Equity Value

[members only]

Multiples

EV / Revenue

below 1.5x

EV / EBITDA

5x–12x

EV / EBIT

[members only]

Historical Financials (USD)

Year

Rev

EBITDA

EBIT

2014

2013

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REFERENCES

Valuation range: EV $1–10bn

Revenue range: $1–10bn

EBITDA range: $150–250M

EV/Revenue range: below 1.5x

EV/EBITDA range: 5x - 12x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Red Lobster Seafood by Golden Gate Capital are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: red lobster seafood

FAQ

What transaction does this page cover?

This page covers Golden Gate Capital’s acquisition of 100% of Red Lobster Seafood, an American company specialised in Hospitality, in 2014, structured as a leveraged buyout (LBO).

How was the acquisition of Red Lobster Seafood by Golden Gate Capital valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the $1–10bn band, its EV/EBITDA multiple within the 5x - 12x range, and its EV/revenue multiple within the below 1.5x range. Exact figures are available to members.

What were Red Lobster Seafood’s revenue and EBITDA at the time of the deal?

At the time of the transaction, Red Lobster Seafood generated annual revenue estimated in the $1–10bn range and EBITDA in the $150–250M bracket (FY 2014). Detailed financial figures are available to members.

What sources support the information on this transaction?

Data on this transaction was compiled from the official corporate announcement published by the parties, combined with independent reporting from specialized financial and M&A publications.

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