Del Frisco's Restaurant Group, known for its upscale steakhouses, told CNBC it will acquire Barteca Restaurant Group for $325 million in cash in a bid to expand its footprint and balance its portfolio.
The deal announced Monday represents a calculated move by Del Frisco's, which owns Del Frisco's Grill, Del Frisco's Double Eagle and Sullivan's Steak House, to grow in scale and reach new customers. It's a big step for a company with a market cap of $344.8 million.
Barteca is a 20-year-old company with two brands, Barcelona, an upscale casual dining restaurant that specializes in Spanish and Mediterranean cuisine, and Bartaco, which features a menu of "upscale street food" with bold South American, Mediterranean and Asian flavors.
Both restaurants are known for wine, small plates and a comfortable, yet stylish atmosphere inspired by tapas bars in Spain and the beach culture of South America and Southern California.
These brands offer more than just a unique dining experience and locally sourced ingredients: They have small footprints, which make them ideal for placement in high-traffic urban areas where rent is inflated and large spaces are hard to find.