Mill Road Capital has agreed to acquire Rubio's Restaurants (NASDAQ: RUBO), an owner and operator of a chain of Mexican restaurants, for $91 million in cash. Mill Road, which already owns a 4.9% stake in the company, plans to acquire all outstanding Rubio's shares for $8.70 per share, a 14% premium over last Friday's closing stock price. Rubio's was advised on the deal by Cowen and Company and DLA Piper, while Mill Road Capital was advised by Foley Hoag. The transaction is expected to close by the end of the third quarter.
There have been 122 completed or announced deals in the Restaurants & Bars industry since the beginning of 2007, according to the PitchBook Platform. PE investors have long been regulars in the industry with 53 deals in 2007 and 43 deals in 2008. Even with the decrease in overall PE deal activity in 2009, the industry managed to stay in the double digits with 16 deals, and the future looks even brighter with 11 deals already so far this year. More than 90 investors have been involved in transactions in the industry, the most active being Sun Capital Partners with 10 deals, BAML Capital Partners with 5, Nexcen Brands with 4 and Madison Dearborn Partners and Levine Leichtman Capital Partners, both with 3 deals a piece.