Media outlets say Del Frisco's Restaurant Group (NASDAQ: DFRG) known for its upscale steakhouses, will acquire Barteca Restaurant Group for $325 million in cash in a bid to expand its footprint and balance its portfolio.
The deal announced Monday represents a calculated move by Del Frisco's, which owns Del Frisco's Grill, Del Frisco's Double Eagle and Sullivan's Steak House, to grow in scale and reach new customers. It's a big step for a company with a market cap of $344.8 million.
Barteca is a 20-year-old company with two brands, Barcelona, an upscale casual dining restaurant that specializes in Spanish and Mediterranean cuisine, and Bartaco, which features a menu of "upscale street food" with bold South American, Mediterranean and Asian flavors.
Both restaurants are known for wine, small plates and a comfortable, yet stylish atmosphere inspired by tapas bars in Spain and the beach culture of South America and Southern California.
These brands offer more than just a unique dining experience and locally sourced ingredients: They have small footprints, which make them ideal for placement in high-traffic urban areas where rent is inflated and large spaces are hard to find.
Del Frisco's is expecting unit growth over the next five years to be 10% to 12% for all of its restaurant brands.
Del Frisco's has 25 Del Frisco's Grill locations, 13 Double Eagle locations and 15 Sullivan's steakhouses, predominantly situated in the major cities in the Northeast.
The chain’s stock opened Monday down 50 cents, or nearly 3%, to $16.45
