Landry’s Buying Rainforest Cafes
MINNEAPOLIS (AP) _ Landry’s Seafood Restaurants Inc. is buying Rainforest Cafe Inc., which operates or licenses 38 theme restaurants worldwide, for $125 million in cash and stock.
The acquisition, announced Wednesday, would create a company with more than 22,000 employees. Rainforest Cafe, based on Hopkins, Minn., would become a Landry’s subsidiary after the deal is completed, expected by May.
Houston-based Landry’s operates a nationwide chain of casual-dining seafood restaurants, including Joe’s Crab Shack, Landry’s Seafood House and the Crab House.
It is paying $5.23 a share in cash or 0.5816 shares for each Rainforest share. Sixty-five percent of the Rainforest shares will be exchanged for Landrys’ shares and 35 percent for cash.
In afternoon trading Thursday on the New York Stock Exchange, Landry’s was down $1.31 1/4 a share, or 13.4 percent, at $8.50. Rainforest shares were up 43 3/4 cents a share at $4.81 1/4 in trading on the Nasdaq Stock Market.
Rainforest announced in December that Lakes Gaming Inc., a casino management company with ties to Rainforest, was acquiring the restaurant chain.
Three weeks later, Rainforest said there was a second suitor, which it would not identify. That turned out to be Landry’s.