NEW YORK CITY-Landry's Restaurants has submitted a $7.50-per-share bid, or about $64.4 million, to acquire Smith & Wollensky Restaurant Group. The proposal comes on the heels of Landry's sale of its Joe's Crab Shack chain last year for $192 million.
Smith & Wollensky, known for its steaks, operates 14 units across the country under its namesake banner as well as six individual concepts in New York City. Shares of the company previously closed at $5.03.
A letter to Smith & Wollensky's board from Houston-based Landry's executives says the acquisition offer was first made on Jan. 12. So far there have been no formal talks between the two companies, according to the letter. "We sincerely hope that your board will reconsider its position and engage in meaningful dialogue without delay so that we can work together to arrive at a negotiated transaction," it says.
Smith & Wollensky's management has said they plan to open three to four new restaurants over the next two years. During its most recently-reported quarter, which ended Oct. 2, the company posted a net loss of $1.9 million. It's restaurants year over year same-store sales rose 2.9%.
Among the chains that Landry's operates are Landry's Seafood, Rainforest Café and Saltgrass Steak House. It also owns a number of one-off restaurant concepts in various cities, the Golden Nugget hotels and casinos and Nevada and hotel and resort properties in Texas.
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