BRS Successfully Exits Investment in Ruth’s Hospitality Group
NEW YORK, March 9, 2012 -- Bruckmann, Rosser, Sherrill & Co. (“BRS”), a New York-based private equity firm, announced today the successful sale of its convertible preferred stock investment in Ruth’s Hospitality Group, Inc. (Nasdaq: RUTH) (“Ruth’s Hospitality” or the “Company”). Ruth’s Hospitality repurchased the convertible preferred stock in a transaction valued at $60.2 million. BRS realized a gross multiple of invested capital of approximately 2.6x and a gross internal rate of return of 60% on its investment.
BRS invested in Ruth’s Hospitality in February 2010. The proceeds from BRS’s investment, together with a common stock rights offering, were used to reduce Ruth’s Hospitality’s outstanding debt and provide the Company with additional financial flexibility. Ruth’s Hospitality operates a portfolio of fine dining restaurants under the brands Ruth’s Chris Steak House, Mitchell’s Fish Market, Mitchell’s Steakhouse and Cameron’s Steakhouse.
“We are proud to have supported Ruth’s Hospitality and delighted with the outcome of our investment,” said Stephen Sherrill, a Managing Director of BRS. “We enjoyed working with Mike and his team, and we are confident the Company is well-positioned for continued growth in the fine dining segment. We wish the entire management team every success in the future.”
Mike O’Donnell, Chief Executive Officer of Ruth’s Hospitality, stated, “We are grateful to BRS for their financial support and strategic guidance through a difficult economic period. As our Company’s performance continues to improve, we felt this was the appropriate time to repurchase the preferred stock held by BRS. We thank BRS for their contribution to our success and we look forward to continuing to grow our restaurant concepts.”
BRS is among the most experienced and successful private equity investors in the restaurant industry. Since 1995, BRS has completed numerous transactions in the sector, including investments in California Pizza Kitchen, Bravo Brio Restaurant Group, Logan’s Roadhouse, Il Fornaio, Corner Bakery Cafe, McCormick & Schmick’s, Real Mex Restaurants, Restaurant Associates and Au Bon Bain. BRS is currently seeking investment opportunities for its third investment partnership.
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