Ruby Tuesday to be acquired by private-equity firm for $2.40 a share

Ruby Tuesdays in Times Square, New York. A "Couple's VIP Table" at Ruby Tuesday on New Years Eve will cost $1,799.
Sunny Ripert | Flickr Commons

Ruby Tuesday on Monday said it agreed to be acquired by a fund managed by NRD Capital, an Atlanta-based private-equity firm.

Under the deal, NRD will acquire all of the restaurant chain's common stock for $2.40 per share in cash and will assume or retire all debt obligations for a total enterprise value of approximately $335 million, excluding transaction expense.

The purchase price represents a premium of approximately 37 percent over Ruby Tuesday's closing share price on March 13, 2017, the day before the company announced its intention to explore strategic alternatives. It was also a premium of approximately 21 percent over Ruby Tuesday's closing share price on October 13, 2017.