Atlanta based company agrees to buyout Ruby Tuesday

Atlanta based company agrees to buyout Ruby Tuesday
(WTVM) - Ruby Tuesday, Inc., is in the process of undergoing an ownership transformation by selling its common stock and relinquishing all of its debt obligations for a total enterprise value of approximately $335 million, according to a press release from Ruby Tuesday. 
A fund managed by NRD Capital, an Atlanta-based private equity firm that specializes in franchised and multi-location business investments is acquiring all Ruby Tuesday restaurants pending shareholder approval and other customary closing conditions.

"The Board of Directors and our advisers have thoroughly evaluated all options available to the Company and are confident that this agreement will provide the most promising opportunity to realize the highest value for our stockholders while providing the best path forward for the Ruby Tuesday brand, its employees, franchisees, and loyal customers," said Stephen Sadove, Non-executive Chairman of Ruby Tuesday. "NRD Capital has a distinguished track record of achieving and maintaining profitable growth for restaurant concepts and will be an excellent partner to lead Ruby Tuesday going forward."

Under the transaction, NRD will purchase all of Ruby Tuesday's common stock for $2.40 per share in cash.  The purchase price represents a premium of approximately 37percent over Ruby Tuesday's closing share price on March 13, 2017, the day before the Company announced its intention to explore strategic alternatives, and a premium of approximately 21 percent over Ruby Tuesday's closing share price on October 13, 2017.

Ruby Tuesday, Inc. owns and franchises Ruby Tuesday brand restaurants. As of September 5, 2017, there were 599 Ruby Tuesday restaurants in 41 states, 14 foreign countries, and Guam.

For more information about Ruby Tuesday, please click here. Ruby Tuesday, Inc. is traded on the New York Stock Exchange.

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