Denny’s, the breakfast chain known for classic diner food and its Grand Slam Breakfast, is going private in a $620 million deal orchestrated by a group of investors.
The deal values the chain at $620 million, including debt. The investors purchasing the company are private equity investment company TriArtisan Capital Advisors, investment firm Treville Capital and Denny’s franchisee Yadav Enterprises.
Under the agreement, Denny’s shareholders will receive $6.25 per share in cash for each share of Denny’s common stock they own, or a total of $322 million. That represents a 52% premium to Denny’s closing stock price on Monday.
Founded in 1953 as Danny’s Donuts, the company changed its name to Denny’s in 1959 to avoid confusion with another chain, and began trading on the New York Stock Exchange a decade later. During the past two years, Denny’s has struggled to boost sales as consumers shifted toward a reliance on delivery through apps.
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