At what enterprise value was RED LOBSTER SEAFOOD acquired in 2014?

During the acquisition of RED LOBSTER SEAFOOD by GOLDEN GATE CAPITAL in 2014, the company was valued at an estimated revenue multiple of below 5x. The transaction's Enterprise Value is estimated to be in the range of 1b - 4b USD. By registering for free, you get access to complete and exact transaction details including enterprise value, revenue, and EBITDA. Additionally, our database shows that the Retail & Consumer industry currently tracks an average EBITDA multiple of 11.4x, providing a valuable benchmark for this transaction.

What was the EV/EBITDA of RED LOBSTER SEAFOOD when it was acquired by GOLDEN GATE CAPITAL?

The estimated EV/EBITDA multiple for RED LOBSTER SEAFOOD is in the range of 5x - 12x. For comparison, the Retail & Consumer sector currently shows an average EBITDA multiple of 11.4x. Join our community for free to access full valuation data and industry trends.

When was RED LOBSTER SEAFOOD acquired by GOLDEN GATE CAPITAL?

RED LOBSTER SEAFOOD was acquired by GOLDEN GATE CAPITAL in 2014.

What was the revenue of RED LOBSTER SEAFOOD at the time of the deal?

The revenue of RED LOBSTER SEAFOOD at the time of the deal is estimated to be in the range of 1b - 3b USD. Register for free to access the full transaction report and exact valuation multiples.

What was the EBITDA of RED LOBSTER SEAFOOD during the acquisition?

RED LOBSTER SEAFOOD's EBITDA is estimated to be in the range of 150M - 250M USD. Join our community for free to access complete and exact deal data.

What is Enterprise Value (EV)?

Enterprise Value (EV) is a measure of a company's total value, often used as a more comprehensive alternative to equity market capitalization. EV includes in its calculation the market capitalization of a company but also short-term and long-term debt as well as any cash on the company's balance sheet.

What is the EV/EBITDA multiple and why is it used?

The EV/EBITDA multiple is a financial ratio that compares a company's Enterprise Value (EV) to its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). It is widely used in M&A and valuation because it allows for comparisons between companies with different capital structures and provides a clear view of operational profitability.

How is the data for the RED LOBSTER SEAFOOD acquisition sourced and is it reliable?

Mynth data is contributed by a professional community of M&A and Private Equity experts. Each transaction, including the RED LOBSTER SEAFOOD deal, is systematically cross-verified by our team using private deal documents and official sources. You can also find the official press release for this transaction here: https://www.prnewswire.com/news-releases/darden-announces-sale-of-red-lobster-to-golden-gate-capital-for-21-billion-259511991.html

← DATABASE

Home Database Retail & ConsumerRED LOBSTER SEAFOOD

07/2014

RED LOBSTER SEAFOOD

Acquired by

GOLDEN GATE CAPITAL

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

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 (11.4x).

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

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (USD)

Year

Rev

EBITDA

EBIT

2014

2013

Other operations with RED LOBSTER SEAFOOD

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