Benihana to be Acquired by Private Fund Group
By: Leon Castles
on Wednesday, May 23, 2012
Miami based Benihana has announced that the company has agreed to be acquired by a private group that is ready to provide funds for the deal. The funds will be managed by Angelo, Gordon and Company Private Equity Group. The company said that the deal will happen for $296 million which will be $16.30 per share, $3 higher than Benihana’s Monday closing price of $13.30 per share. The company said that soon after the news of acquisition was public stocks of Benihana on NASDAQ jumped to $16.10 per share. Currently, Benihana owns 95 Japanese hotels and 16 franchise agreements across the United States.
Benihana is doing really well in the business and last year they managed to improve their revenues as well. In the first quarter results, Benihana posted sales of $350.4 million which is higher than $325.9 million that they made in the last quarter of 2011. However, the company said that the deal must be approved by the shareholders of Benihana and once that is done the deal will close in the second quarter of 2012. The deal will also allow Benihana to solicit and consider various other proposals for sale till July 1.
The deal will also provide cash out for various Benihana investors like BFC Financial Corp. The deal will provide BFC Financial Corp with $25.8 million for 1.58 million Benihana shares. Other financial investors like Coliseum Capital Management and Benihana of Tokyo will also receive their share of profit.