Landry’s Inc. of Houston has confirmed its purchase of Mastro’s Restaurants LLC of Woodland Hills, Calif., and already has plans to expand the 11-unit, upscale brand by three more units during the next 15 months.
Terms of the deal were not disclosed, but a Landry’s spokesman said Mastro’s chairman and chief executive Mark Levy would stay with the Landry’s division. “Levy and his management team will remain in place to run day-to-day operations of the concept,” a company spokesperson said.
“Mastro’s is the best steak and seafood restaurant concept in America,” Tilman Fertitta, owner, chairman and chief executive of Landry’s Inc., told Nation’s Restaurant News Monday. Landry’s owns and operates a wide variety of restaurant, hospitality and gaming brands, ranging from Landry’s Seafood and Rainforest Café to the Golden Nugget Casinos and Hotels.
“[Mastro’s] is the leader in all markets in which it operates,” Fertitta said. “Business will continue as usual without any changes visible to the customer, and I look forward to helping the management team continue to grow the brand with three new planned unit openings over the next 15 months.”
Fertitta said that on May 24, Landry’s acquired all of the Mastro’s Restaurants equity interests, which included those of the founding Mastro family. A majority interest in the company was held by Kinderhook Industries LLC and Soros Strategic Partners LP, two New York-based private-equity firms that had grown the company since buying it in 2007. At the time of the 2007 purchase, Mastro’s Restaurants included five Mastro’s Steakhouses and two Mastro’s Ocean Clubs.
The original Mastro’s Steakhouse remains in Scottsdale, Ariz., and the company has added Mastro’s City Hall Steakhouse in Scottsdale, as well as steakhouse locations in Chicago and the California communities of Beverly Hills, Costa Mesa, Thousand Oaks and, in the fall of 2012, Palm Desert. Also in fall 2012, the Beverly Hills location opened The Penthouse, an upscale lounge.
The Mastro’s division also has upscale seafood Mastro’s Ocean Club units in Las Vegas; Newport Beach, Calif.; and Scottsdale.
An industry insider familiar with Mastro’s units speculated that Mastro’s produced earnings before interest, taxes, depreciation and amortization of about $22 million, and indicated a selling price would be around 10 times EBITDA. The Mastro’s units were likened to Morton’s Steakhouse, which Landry’s acquired for $116.6 million in a deal closed in February 2012.
Average Mastro’s Steakhouse checks are estimated around $135, ranking it among the nation’s more expensive steakhouses.
Privately-owned Landry’s also owns McCormick & Schmick’s Saltgrass Steak House, Landry’s Seafood House, Claim Jumper, Bubba Gump Shrimp Co. 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, Nev.; the Isle Casino Hotel in Biloxi, Miss.; the Kemah (Texas) Boardwalk; the Galveston Island (Texas) Historic Pleasure Pier; the San Luis Resort, Inn at the Ballpark; and the Downtown Aquarium in Denver and Houston.
Landry’s said in 2012 that its companies were expected to generate about $2.5 billion in revenue.
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