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Patina group buys Smith & Wollensky for $79.6M

Paul Frumkin, Managing Editor

March 5, 2007

2 Min Read
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Paul Frumkin

NEW YORK Smith & Wollensky Restaurant Group Inc. has agreed to be purchased by Patina Restaurant Group LLC in an all-cash merger valued at about $79.6 million, or $9.25 per share. The transaction comes about a month after Landry’s Restaurant Group of Houston offered to acquire “through merger or otherwise” the New York-based steakhouse company for about $65 million, or $7.50 per share. —Publicly held luxury steakhouse operator

As part of the deal with privately held Patina, S&WRG chief executive Alan Stillman will purchase all of the company’s New York restaurants—the Smith & Wollensky flagship in midtown, Quality Meats, Maloney & Porcelli, Park Avenue Cafe, Cité and The Post House. Stillman said he would work with Patina in an unofficial capacity to operate and expand the Smith & Wollensky brand. In addition to the New York branch, the company operates eight Smith & Wollensky steakhouses around the country. —Publicly held luxury steakhouse operator

Stillman said he planned to vote his shares in Smith & Wollensky in favor of the merger and recommend that shareholders accept the offer. —Publicly held luxury steakhouse operator

“This is a good deal,” he said. “[Smith & Wollensky] shareholders will have doubled their [share value] from $4.75 last year before the Landry’s offer.” —Publicly held luxury steakhouse operator

Stillman said the deal was the result of a longtime friendship with Nick Valenti, chief executive of Patina. —Publicly held luxury steakhouse operator

Valenti said in a statement that the Smith & Wollensky outlets would be integrated and expanded “as part of our organization.” —Publicly held luxury steakhouse operator

Valenti formed Patina Restaurant Group last year with chef-founder Joachim Splichal and Tokyo-based foodservice conglomerate Shidax Corp., from elements of Restaurant Associates and Los Angeles-based Patina Group. The company, which includes all of the former RA restaurant holdings, several East Coast foodservice locations and all of Patina Group’s West Coast restaurants and cultural-venue accounts, was acquired from London-based contract giant Compass PLC for about $90 million. —Publicly held luxury steakhouse operator

Patina operates about 65 premium concepts, including The Sea Grill, the Brasserie, Nick & Stef’s, Patina and the Pinot bistro chain. —Publicly held luxury steakhouse operator

Stillman said the deal is expected to take three or four months to close. —Publicly held luxury steakhouse operator

About the Author

Paul Frumkin

Managing Editor, Nation’s Restaurant News

After graduating from the State University of New York at New Paltz with a degree in English, Paul Frumkin attended the Culinary Institute of America in Hyde Park, N.Y., graduating with honors in 1980. That year he moved to New York City where he worked for several foodservice and hotel publications. In 1984 he co-wrote “The Norman Table, The Traditional Cooking of Normandy,” with chef-restaurateur Claude Guermont. The cookbook, which was published by Charles Scribners Sons, won the “Best European Cookbook” award from the International Association of Culinary Professionals in 1985. He joined Nation’s Restaurant News in 1990 and has held a number of editorial positions there. He currently covers legislative policy and the Northeast for NRN.

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