thanks for visiting cnnmoney. Red Lobster being sold for $2.1 billion - my dish olive garden darden restaurants

Golden Gate may inject some new energy into the Red Lobster, but the deal may irritate Darton (DRI)investors.
Shares of the company fell 4%.
Some hedge funds have criticized Darton's approach to Red Lobster.
Darton originally planned to rotate-
Before deciding to sell Red Lobster to Golden Gate, leave the seafood chain as an independent listed company.
The sale does not require shareholder approval, dadden said.
There are 5 on the starboard side.
5% of Darton said the sale to Kinmen "seriously underestimated the value of Red Lobster and its real estate assets . "
Jeffrey Smith, CEO of Starboard, said that it was "really incredible" that Darton directors were "bold" to negotiate a sale despite shareholder opposition ".
"Unfortunately, our suspicions have been confirmed ---
"This sale is the wrong deal, at the wrong time, for the wrong reason," Smith said . ".
Barington Capital, another hedge fund, has been pushing for the spin-off of Darton into two separate companies ---
One is the mature Olive Garden and the Red Lobster brand, the other is the faster brand
Chain stores like Longhorn steak house.
Barrington also wants Darton to retain control of the Red Lobster. estate assets.
James Mitarotonda, CEO of Barington, said Darden's agreement to sell red lobsters at a price equal to the "fire sale price" was "unreasonable ".
Darden expects a $1 sale to Golden Gate Capital.
6 billion after tax and transaction costs, the company plans to use funds to repay its debts, buy back shares and continue to pay dividends.
Red Lobster's new private equity overlord will face a daunting task in trying to revive the business.
But since Red Lobster is no longer publicly traded, Golden Gate can avoid a tough Wall Street review.
A person familiar with the matter pointed out that a Red Lobster
It will be a tough sell-off for investors.
"In fact, the business is falling rapidly.
It's a tough story as a public company, "the source said. Related: Fast-
Food Workers Strike nationwide
Stores in the United StatesS. tumbled 8.
8% in the first three months of 2014, compared to 5.
Olive Garden 4% drops.
But Josh Olshansky, managing director of Golden Gate Capital, said in a statement, "Red Lobster is a very strong brand with unparalleled market position in seafood casual dining.
"Golden Gate has no plans to close 700 stores in Red Lobster, a private equity company that declined to comment.
However, people familiar with the matter said stores may be closed, but the size is not "dramatic ".
By cutting the Red Lobster open, Darton can now focus on fixing the Olive Garden.
"All the turnaround focus can be on Olive Garden 100% instead of fighting a war on multiple fronts," the person said . ".
To pay for the purchase of Red Lobster, Kinmen received an undisclosed financing from Deutsche Bank, Jefferies and GE Capital.
It also made $1. 5 billion sale-
Real Estate Capital properties in the United States (ARCP)
It has over 500 Red Lobster properties.
Since December, they have contacted about 70 possible strategic and financial chasers, dadden said.