Rubio's Closes Going Private Transaction With Mill Road Capital
August 24 2010 - 4:00PM
Rubio's Restaurants, Inc. (Nasdaq:RUBO) today announced the closing
of its merger with a subsidiary of Mill Road Capital, L.P. to take
the company private. Rubio's former stockholders are receiving
$8.70 per share in cash in the transaction. The transaction is
the result of a comprehensive strategic alternatives review process
under the supervision of a Special Committee of the Board of
Rubio's.
Rubio's headquarters will remain in Carlsbad under the
leadership of its existing management team. No significant
changes in strategic direction or operations are expected as a
result of the transaction. Ralph Rubio, the founder of
Rubio's, retains an ownership position in the newly private company
and will continue his role as a member of the Board of
Directors.
"This is a milestone for Rubio's," said Ralph Rubio. "I was
excited to open the first Rubio's in 1983 after traveling to Mexico
and camping, surfing and grilling on the beach. Going public
in 1999 provided us with the resources to quickly
expand. Returning to private ownership will afford us the
independence and flexibility to continue to build our unique
brand. Rubio's will continue to offer our guests the freshest,
most delicious Beach Mex cuisine."
"Today, I'm excited as I've ever been about the future of
Rubio's," Mr. Rubio continued. "We truly believe there is no
other brand like Rubio's, and we have the potential and desire to
keep growing our business."
"We are delighted to back Ralph Rubio, Dan Pittard and the
entire management team," said Scott Scharfman, Managing Director at
Mill Road. "We first began analyzing Rubio's over four years
ago and eventually built a significant public ownership position in
the company. Taking Rubio's private represents the ultimate
expression of our confidence in the company's management and its
future."
"Mill Road has extensive knowledge of the fast casual sector,
which remains the best performing sector in the restaurant
industry," said Dan Pittard, Rubio's President and CEO. "Their
investment in Rubio's is a strong endorsement of our winning
strategy within this sector. I'm excited about the opportunity
to partner with Mill Road and see Rubio's prosper as a private
company."
About Rubio's® Restaurants, Inc.
Bold, distinctive, Baja-inspired food is the hallmark of Rubio's
Fresh Mexican Grill®. The first Rubio's was opened in 1983 in
the Mission Bay community of San Diego by Ralph Rubio and his
father, Ray Rubio. Rubio's is credited with introducing fish
tacos to Southern California and starting a phenomenon that has
spread coast to coast. In addition to chargrilled marinated
chicken, lean carne asada steak, and slow-roasted pork carnitas,
Rubio's menu features seafood items including grilled mahi mahi and
shrimp. Guacamole and a variety of salsas and proprietary
sauces are made from scratch daily, and Rubio's uses canola oil
with zero grams of trans fat per serving. The menu includes
tacos, burritos, salads and bowls, quesadillas, HealthMex®
offerings which are lower in fat and calories, and imported beer in
most locations. Each restaurant design is reminiscent of the
relaxed, warm and inviting atmosphere of Baja California, a coastal
state of Mexico. Headquartered in Carlsbad, California,
Rubio's operates, licenses or franchises more than 200 restaurants
in California, Arizona, Colorado, Utah and Nevada. More
information can be found at www.rubios.com.
About Mill Road Capital
Mill Road Capital is an investment firm focused exclusively on
investing in outstanding publicly-traded companies. Mill Road
invests on behalf of a prominent international group of limited
partners, including state pension funds, foundations, endowments
and insurance companies. Mill Road has flexible, long-term
capital and the ability to purchase shares in the open market, buy
large block positions from existing shareholders, provide capital
for growth or acquisition opportunities, or partner with management
and sponsor going-private transactions. More information can
be found at www.millroadcapital.com.
Forward-Looking Information
This press release contains certain forward-looking statements
about Rubio's that are subject to risks and uncertainties that
could cause actual results to differ materially from those
expressed or implied in the forward-looking statements. These
factors include, but are not limited to, risks that are set forth
in the "Risk Factors," "Legal Proceedings" and "Management
Discussion and Analysis of Results of Operations and Financial
Condition" sections of Rubio's filings with the Securities and
Exchange Commission.
CONTACT: Rubio's Restaurants, Inc.
Frank Henigman
760-929-8226
Mill Road Capital
Scott Scharfman
203-987-3500
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