The famed Del Frisco's steakhouse chain is becoming part of the Tilman Fertitta empire, and America officially has a new king of steak.
Fertitta's Landry's is buying the Del Frisco's Double Eagle and Del Frisco's Grille restaurant group from private-equity firm L Catterton for an undisclosed price, CNBC has learned.
L Catterton announced on June 24 it was buying the publicly held Del Frisco's Restaurant Group in a deal valued at $650 million, including debt. Del Frisco's has been weighed down by debt and pressure from hedge fund Engaged Capital. That deal is expected to close Wednesday, and L Catterton will then immediately sell the Del Frisco's brands to Landry's. Landry's paid $300 million to $400 million for the Texas-based chain, sources said, speaking on condition of anonymity. L Catterton will retain the other brands in the deal.
The transaction gives Fertitta 35 more restaurants, including the Sixth Avenue Del Frisco's in New York, one of the highest-grossing restaurants in America.
With this deal, billionaire Fertitta adds another high-end steakhouse and luxury restaurant chain to his portfolio. The privately held Houston-based group owns more than 40 dining brands, including Mastro's, which it bought in 2015, Morton's, Strip House, Brenner's Steakhouse and Mitchell's. Landry's also owns the Golden Nugget casino chain, and Fertitta owns the NBA's Houston Rockets.