Ruby Tuesday Chain to be Taken Private

Ruby Tuesday operates 599 locations in the US and 14 foreign countries.

MARYVILLE, TN—Casual dining chain Ruby Tuesday, hit by four consecutive years of declining sales, said Monday it would be taken private by NRD Capital for $335 million, including the assumption of debt. The deal for $2.40 per common share represents a 21% premium on Ruby Tuesday’s closing price this past Friday and a 37% premium over its closing price on March 13, the day before the company said it would explore strategic alternatives. At its peak in 2004, the chain’s stock traded at about $33 per share.

“The board of directors and our advisors have thoroughly evaluated all options available to the company and are confident that this agreement will provide the most promising opportunity to realize the highest value for our stockholders while providing the best path forward for the Ruby Tuesday brand, its employees, franchisees and loyal customers,” says Stephen Sadove, Ruby Tuesday’s non-executive chairman. “NRD Capital has a distinguished track record of achieving and maintaining profitable growth for restaurant concepts and will be an excellent partner to lead Ruby Tuesday going forward.”