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Red Lobster Will Be Sold For $2.1 Billion

Darden Restaurants Inc. made the decision to sell Red Lobster chain to Golden State Capital for $2.1 billion all cash. This news came to light in December last year despite investors' criticisms. Initially, activist investors believed that Darden should go through a more significant breakup, separating the company into two parts (Mature brands and higher-growth chains).

Starboard has publicly opposed the plan and pushed for a shareholder vote in order to stop the plan from going through. Darden however, states that this decision is not contingent upon shareholder vote. They plan to hold a special meeting, but will go through with the plan anyhow. Darden will stand to receive net proceeds of $1.6 billion.