Restaurant operator PF Chang's China Bistro Inc said it would go private in a $1.1 billion deal with private equity firm Centerbridge Partners.
Centerbridge will pay $51.50 per share — a premium of about 30 percent to PF Chang's stock's Monday close.
PF Chang's shares were trading slightly above the offer price at $51.59 before the opening bell on Tuesday. The stock last traded above $50 in February 2011.
PF Chang's CEO Rick Federico said going private would help give the company greater flexibilty to pursue its long-term strategy to boost traffic and improve brand performance.
PF Chang's, which operates namesake Bistro restaurants and the smaller Pei Wei quick-service chain, is free to solicit superior proposals through May 31, the companies said.
PF Chang's has been reworking its offerings and special deals after after diners were put off by its decision to increase prices.
PF Chang's, Olive Garden parent Darden Restaurants Inc and other full-service chains are facing stiff competition from both McDonald's Corp and so-called fast-casual chains such as Chipotle Mexican Grill Inc and Panera Bread Co.
PF Chang's also reported a 42 percent drop in first-quarter profit, missing Wall Street expectations, partly due to higher ingredient and operating costs.
The deal with Centerbridge, which is expected to close by the end of the third quarter, is conditional on approval by anti-trust authorities and the minimum tender of about 83 percent of the PF Chang's common shares, among other things.
Goldman Sachs and DLA Piper LLP are advising PF Chang's while Centerbridge is being advised by Wells Fargo Securities, Deutsche Bank Securities and Weil, Gotshal & Manges LLP.
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