The BIG News November 2006
OUTBACK Steakhouse Returns to Roots for $3.2 Billion!
OSI RESTAURANT PARTNERS INC., the casual-dining giant whose holdings include Outback Steakhouse, Carrabba's Italian Grill and Bonefish Grill, has agreed to be acquired for $40 a share, or $3.2 billion, by a private-equity group that includes co-founders CHRIS SULLIVAN, BOB BASHAM and TIM GANNON. The going-private deal, subject to shareholder approval, is expected to close in April. OSI said it would conduct a 50-day “market test’ in which other offers would be solicited by a special committee of OSI directors. It noted that the $3.2 billion offer is not subject to proof of financing. Leading the deal are BAIN CAPITAL PARTNERS LLC of Boston, which formerly invested in Burger King, Domino's and Dunkin' Brands, and Greenwich, Conn.-based CATTERTON PARTNERS, whose current holdings include stakes in P.F. Chang's, chef Jean-Georges Vongerichten's fledgling Spice Market chain, the First Watch breakfast-lunch chain and the Cheddars casual-dining chain. The buyers did not disclose how much equity would be held by Sullivan, Basham and Gannon, but it was stated that OSI chief executive BILL ALLEN will remain with the company. Going private would end a relationship with Wall Street that had been strained in recent months as OSI struggled to strengthen its flagship Outback chain and fended off efforts by former shareholders to force spinoffs of noncore brands. Outback is operator or franchisor of about 1,385 restaurants, including the Fleming's Prime Steakhouse & Wine Bar, Cheeseburger in Paradise, Roy's and Lee Roy Selmon's chains.
