Ruth's Hospitality To Sell Mitchell's Restaurants, Announces Buyback

(RTTNews) - Ruth's Hospitality Group, Inc. (RUTH) Monday said it has entered into a definitive agreement to sell substantially all of the assets related to its Mitchell's Fish Market and Mitchell's/Cameron's Steakhouse businesses to Landry's, Inc.

The company will receive $10 million for its 21 Mitchell's Fish Market and Mitchell's/Cameron's Steakhouse restaurants. The transaction is expected to close within 75 days.

North Point Advisors served as exclusive financial advisor to Ruth's Hospitality Group.

Excluding customary transaction-related costs, this transaction is not expected to have a material impact on the company's current fiscal 2014 guidance.

This guidance assumes that the results of operations from the Mitchell's Restaurants' will be reclassified to discontinued operations during the fourth quarter of fiscal 2014.

The company plans to file revised financial statements with the Securities and Exchange Commission for the stand-alone Ruth's Chris Steak House business within four days of the closing of the deal.

Following this, previously issued financial statements will be revised to reclassify the Mitchell's Restaurants' operating results, including impairment loss, as discontinued operations.

In conjunction with the sale, Ruth's Hospitality Group also announced that its Board of Directors has approved a new share repurchase program to repurchase up to $50 million of its common shares outstanding.

The new authorization replaces the company's previous share repurchase program announced in May 2013, which has been terminated.