Denny's to be acquired and taken private in a deal valued at $620 million

"Denny's said Monday that it's being acquired by a group on investors in a deal that will take the breakfast chain private. Denny's board unanimously approved the deal, which values Denny's at $620 million including debt. Denny's will be purchased by private equity investment company TriArtisan Capital Advisors, investment firm Treville Capital and Yadav Enterprises, which is one of Denny's largest franchisees."

"Under the agreement, Denny's shareholders will receive $6.25 per share in cash for each share of Denny's common stock they own, or a total of $322 million. That represents a 52% premium to Denny's closing stock price Monday. Denny's shares jumped 47% in after-hours trading Monday. Denny's was founded in 1953 in Lakewood, California, as Danny's Donuts. The name was changed to Denny's Coffee Shops in 1959 to avoid confusion with another chain. Denny's began trading on the New York Stock Exchange in 1969."

"Like many casual chains, Denny's saw its sales plummet during the COVID pandemic. Once the pandemic eased, it found itself dealing with changing customer dining patterns, including a heavier reliance on delivery. Denny's has also struggled as newer chains like First Watch promoted healthier breakfast options. Last fall, Denny's said it planned to close 150 of its lowest-performing locations. At the end of the second quarter, Denny's had 1,558 restaurants worldwide, including 1,422 Denny's restaurants and 74 Keke's restaurants. Denny's acquired the Keke's brand in 2022."

Denny's will be acquired and taken private in a transaction valuing the company at $620 million including debt. TriArtisan Capital Advisors, Treville Capital and Yadav Enterprises will purchase Denny's, with shareholders to receive $6.25 per share in cash, totaling $322 million and representing a 52% premium to Monday's closing price. Shares rose 47% in after-hours trading. Denny's reached out to more than 40 potential buyers and received multiple offers before the board unanimously approved the sale. The chain faced pandemic-related sales declines, shifting dining patterns toward delivery, competition from healthier breakfast chains, and plans to close 150 low-performing locations.

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