The Great Smoky Mountain Journal

Staff, Wire Reports

Posted: Sunday, January 21, 2018 06:33 PM

LOCAL/BUSINESS - Maryville-Based Ruby Tuesday Announces Chain To Be Bought and Managed By Atlanta Equity Firm

MARYVILLE, Tenn. (WVLT) -- Maryville-based Ruby Tuesday, Inc. announced an agreement to be bought by a fund managed by a private equity firm out of Atlanta.

Under terms of agreement, NRD Capital will acquire all of Ruby Tuesday's common stock for $2.40 per share in cash and assume or retire all debt for a total enterprise value of $335 million, according to a press release sent Monday morning.

According to officials, the purchase price represents a premium of 37% over Ruby Tuesday's closing share price on March 13 and a premium of 21% over Ruby Tuesday's closing share price on October 13.

“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,” said Stephen Sadove, Non-executive Chairman of Ruby Tuesday. “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.”

Ruby Tuesday's Board of Directors and NRD unanimously approved the transaction.

“Our focus at NRD is investing in quality restaurant companies and providing strategic and operational expertise to create sustainable value. With a well-established brand, differentiated from other casual dining restaurants by its Garden Bar, we see significant opportunities to drive value for Ruby Tuesday,” said Aziz Hashim, founder of NRD. “We are excited to be part of the Company’s next chapter. As a private company, we will be able to take a long-term view on Ruby Tuesday, allowing us to make an investments in people, product, and customer experience, without public company constraints. This approach will enable us to reward everyone involved in our success, in addition to our investors.”

As of September 5, 599 Ruby Tuesday restaurants operated in 41 states, 14 foreign countries, and Guam. Of those restaurants, Ruby Tuesday, Inc. owned 541 of the restaurants and franchised 58, made up of 17 domestic and 41 international restaurants