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Landry’s clear to acquire Morton’s

Landry’s Inc. has completed its tender offer for shares of Morton’s Restaurant Group Inc., clearing the way for the $116.6 million acquisition, the company said Wednesday.

Tilman J. Fertitta, chairman and chief executive of the Houston-based company, said about 15.6 million shares were tendered at an offered price of $6.90 each, giving him about 92.2 percent of outstanding shares. That allowed him to close the deal without shareholder approval.

The board of Chicago-based Morton’s, which owns and operates more than 70 upscale steakhouses, had agreed to the deal on Dec. 16. Landry’s offer of $6.90 was a 34-percent premium over the $5.16 per share the stock traded at on the day of the announcement. Morton’s had 16.9 million outstanding shares that, in the 52 weeks before the announcement, traded between $4.18 and $7.75. Morton’s shares closed Tuesday at $6.89 a share.

The shares were tendered to Fertitta’s wholly-owned company, Fertitta Morton's Restaurants Inc., and its subsidiary, Fertitta Morton's Acquisition Inc.

In January, Landry’s Inc. closed on a $131.6 million purchase of Portland, Ore.-based McCormick & Schmick’s, a high-end seafood operator with about 80 units in the United States and seven in Canada under The Boathouse brand.

On Monday, Landry’s announced a $60 million development on the historic Pleasure Pier in Galveston Island, Texas, a project that would include one of its Bubba Gump Shrimp Co. restaurants and a new quick-service brand extension, Gump on the Run.

Besides Bubba Gump and McCormick & Schmick’s, privately owned Landry’s owns such restaurant concepts as Rainforest Cafe, Saltgrass Steak House, Landry’s Seafood House, Claim Jumper and The Chart House, as well fine-dining restaurants Vic & Anthony’s, Brenner’s Steakhouse, Grotto, LaGriglia, Willie G’s and Oceanaire.

Landry’s also owns the Golden Nugget Hotel & Casinos in Atlantic City, N.J., Las Vegas and Laughlin, Nevada, the Kemah Boardwalk, the San Luis Resort, Inn at the Ballpark and the Downtown Aquarium in Denver and Houston.

Landry’s said the companies will generate about $2.5 billion in revenues in 2012.

Morton's has 67 steakhouses in 26 states and Puerto Rico, as well as six international locations in Hong Kong, Macau, Shanghai, Mexico City, Singapore and Toronto.

Contact Ron Ruggless at [email protected].
Follow him on Twitter: @RonRuggless

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