Rubio's Restaurant

Stock up 12% now $ 8.47


With the beginning of a recovery in consumer spending and increased access to capital, private equity firms have recently been a renewed interest in the catering industry. Seven months ago, has rejected an offer Rubio a redemption unsolicited $ 8 per share, a premium of 33% in its share price then. Mill Road Capital, LP, a private investment firm based in Greenwich, Conn., has announced its desire to acquire Rubio Restaurants, Inc. The main purpose of Mill Road Capital is directly own "a diverse group of companies producing revenue and still earn higher returns than the average capital. Rubio, who operates over 195 restaurants in California, Arizona, Colorado, Utah and Nevada, reported a quarterly profit of $ 367,000, or 4 cents per share compared to $ 245,000, or 2 cents per share a year earlier. It currently owns about 5% of shares outstanding Rubio, the company said in a regulatory filing.

Mill Road is offering a cash transaction valued at $ 8.70/share, which represents a premium of approximately 14% at Friday's closing price of $ 7.66 Rubio. Ralph Rubio, founder and president of Rubio, Director General Daniel Pittard, and private equity Rosewood Capital collectively own approximately 24% of the outstanding shares of the company. They all pledged to vote in favor of the proposed transaction with Mill Road Capital. The transaction was unanimously approved by the board Rubio and the transaction is expected to close during the third quarter of this year. Mill Road will acquire all outstanding shares of Rubio in this merger for cash, and total transaction value is approximately $ 91million. After the announcement of the takeover, the shares of Rubio grew 12% to a two year high of $ 8.60 in Monday morning trading in the NASDAQ.