Darden to Sell Red Lobster for $2.1 Billion
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Darden Restaurants Inc. agreed to sell the Red Lobster seafood-restaurant chain to Golden Gate Capital for $2.1 billion, giving it an injection of cash and time to focus on reviving growth in its Olive Garden business.
The sale will result in about $1.6 billion in proceeds, of which about $1 billion will be used to retire debt, Orlando, Florida-based Darden said today in a statement. The remainder will fund a share buyback program of as much as $700 million.