RED LOBSTER SEAFOOD acquired by GOLDEN GATE CAPITAL
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.
-> Deep-dive in Retail & Consumer market trends
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
LOGIN
Equity Value
LOGIN
Multiples
EV / Revenue
LOGIN
EV / EBITDA
LOGIN
EV / EBIT
LOGIN
Historical Financials (USD)
Similar deals in Retail & Consumer
| Date | Acquirer | Target | Country | Sector | Deal Context |
|---|---|---|---|---|---|
| 12/2014 | BRIDGEPOINT | AZZURRI GROUP | United Kingdom | Hospitality & Leisure | The acquisition of the ASK and Zizzi restaurant chains by Bridgepoint represented the final step in the strategic breakup and divestment of the Gondola Group by its owner, Cinven. Cinven, a European private equity firm, had taken Gondola private several years prior and executed a strategy to realize its investment by selling off the group's constituent brands individually |
| 11/2014 | TPG | PREZZO | United Kingdom | Hospitality & Leisure | TPG Capital, a U.S.-based private equity firm, agreed to acquire Prezzo plc, a publicly-listed UK casual dining chain, in a take-private transaction. The deal was structured as a recommended cash acquisition through Papa Bidco, a newly-incorporated vehicle indirectly owned by TPG funds |
| 06/2014 | THE CARLYLE GROUP | HOMAIR VACANCES | FRANCE | Hospitality & Leisure | The entry of The Carlyle Group as the new controlling shareholder of Homair Vacances marks the accelerating the consolidation of the fragmented European outdoor hospitality market. The operation is strategically synchronized with the simultaneous merger of the British competitor Eurocamp, a move that immediately doubles the group's operational scale and distribution capabilities |
| 06/2014 | HOMAIR VACANCES | EUROCAMP | UNITED KINGDOM | Hospitality & Leisure | Transforming the landscape of European outdoor hospitality, this transaction sees Homair Vacances acquire a full controlling stake in the British operator Eurocamp from its parent company, Holidaybreak |
| 06/2014 | THE CARLYLE GROUP | EUROPEAN CAMPING GROUP (ECG) | FRANCE | Hospitality & Leisure | The Carlyle Group acquired a 70% majority stake in Homair Vacances (now European Camping Group) in a transaction valuing the company at over EUR300 million. Montefiore Investment, the historical sponsor since 2006, reinvested to keep a 25% minority stake |
| 05/2014 | BAIN CAPITAL | RETAIL ZOO | AUSTRALIA | Hospitality & Leisure | Bain Capital Private Equity, through funds advised by an affiliate, partnered with Retail Zoo’s founders Jeff and Janine Allis to complete the acquisition of Retail Zoo from The Riverside Company and the founders |
| 01/2014 | CARAVELLE | BELAMBRA CLUBS | FRANCE | Hospitality & Leisure | Caravelle acquired a 61% majority stake in Belambra from ACG Capital (formerly Acto/Ekkio). The transaction concluded a laborious two-year sale process during which several auctions failed to attract satisfactory bids from industrial players (Pierre & Vacances) or funds (Sagard, LBO France) |
| 11/2013 | 3I | BASIC-FIT | NETHERLANDS | Hospitality & Leisure | The investment by 3i Group plc in Basic-Fit marks a significant milestone in the company's growth journey. The strategic rationale behind the deal is to support Basic-Fit's further domestic and international expansion, leveraging 3i's extensive experience in the retail discount market and its network of professionals |
| 11/2013 | CALEDONIA INVESTMENTS | PARK HOLIDAYS | UNITED KINGDOM | Hospitality & Leisure | Caledonia Investments has successfully completed a capital restructuring of Park Holidays, acquiring a majority stake in the holiday park operator. This transaction is part of a strategic plan to support the company's growth, which generated an EBITDA of over £20 million for the year ended December 31, 2012 |
| 10/2013 | VALEDO PARTNERS | JOE & THE JUICE | DENMARK | Hospitality & Leisure | Valedo Partners acquired a majority stake in Joe & the Juice in 2013, with founder and CEO Kaspar Basse retaining a minority equity position and remaining in the management role. The deal is structured as a classic small‑LBO, with Valedo partnering alongside Basse and a group of key employees who also take equity stakes, thereby aligning incentives for a value‑creation phase focused on geographic expansion and brand‑building |
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