Landry's Inc. late Wednesday night said it was offering $22 per share in cash to purchase Ark Restaurant Group, a New York-based restaurant, bar and quick-service operator.
With about 3.24 million outstanding shares, the value of the deal would be about $71.3 million.
Houston-based Landry’s said the offer is a 22-percent premium over Ark’s Wednesday close of $18.04 a share, according to Nasdaq. Ark’s 52-week trading range was $13.86 to $17.98 per share.
Ark Restaurants owns and operates 21 restaurants and bars, 22 quick-service concepts and catering operations predominantly in New York, Washington, D.C., and Las Vegas.
Tilman Fertitta, president and chief executive of Landry’s, asked in a letter sent to Michael Weinstein, Ark’s chairman and chief executive, that the board enter into negotiations for the deal. Fertitta noted that cash was available from Landry’s parent, Fertitta Entertainment Inc.
“Given our access to existing cash, ability to consummate the transaction without a financing contingency and the clear benefits we believe such a transaction would provide to all constituents,” Fertitta said, “we would hope to proceed as soon as possible.”
In addition to those concepts, Landry’s operates a number of other restaurant brands, including Landry's Seafood House, Rainforest Cafe, The Chart House, Bubba Gump Shrimp Co., Claim Jumper, Saltgrass Steak House and Oceanaire. The company's gaming and entertainment businesses include the Golden Nugget Hotel & Casinos in Las Vegas and Laughlin, Nev., and Atlantic City, the Kemah Boardwalk, the San Luis Resort Complex, and the Downtown Aquariums in Denver and Houston.
A number of Ark’s operations in are in gaming venues, including at the New York-New York Hotel & Casino Resort and Venetian Casino Resort in Las Vegas, the Resorts Atlantic City Hotel and Casino in New Jersey and the Foxwoods Resort Casino in Ledyard, Conn. It also has operations at the Hard Rock Hotels and Casinos in Tampa and Hollywood, Fla.
In December, Ark reported income for the year ended Sept. 29 of $5.7 million, or $1.75 per share, compared with $2.7 million, or 77 cents per share in the prior year. The company opened one new restaurant in March last year, Clyde Frazier’s Wine and Dine in New York City.