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07/2014

RED LOBSTER SEAFOOD acquired by GOLDEN GATE CAPITAL

UNITED STATES Hospitality & Leisure / Hospitality / Restaurants / Chains EV 1b - 4b USD

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 LOGIN in 2014, is valued in this transaction at an EV/EBITDA multiple of LOGIN, representing a LOGIN to the average currently observed in the Retail & Consumer sector (11.0x).

Note that this data is based on contribution from our growing community, composed of M&A and Private Equity professionals, and has been verified by our team to ensure its accuracy.

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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.

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Historical Financials (USD)

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REFERENCES

Valuation range: EV 1b - 4b USD

Revenue range: 1b - 3b USD

EBITDA range: 150M - 250M USD

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: verified mynth contributor (mynth data is contributed by M&A / PE professionals and systematically cross-verified with private deal documents and official press releases).

Target: red lobster seafood

Acquirer: golden gate capital