Reuters: Private Equity: UPDATE 1-PF Chang's to go private in $1.1 bln deal

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UPDATE 1-PF Chang's to go private in $1.1 bln deal May 1st 2012, 12:14 Tue May 1, 2012 8:14am EDT * PF Chang's shareholders to get $51.50 per share * Centerbridge to pay 30 pct premium to Monday's close * PF Chang's can solicit better offers through May 31 May 1 (Reuters) - Restaurant operator PF Chang's China Bistro Inc said it would go private in a $1.1 billion deal with private equity firm Centerbridge Partners. Centerbridge will pay $51.50 per share -- a premium of about 30 percent to PF Chang's stock's Monday close. PF Chang's, which operates namesake Bistro restaurants and the smaller Pei Wei quick-service chain, may solicit superior proposals through May 31, the companies said in a statement. The deal with Centerbridge is expected to close by the end of the third quarter. PF Chang's has been reworking its offerings and special deals after its move to increase prices curbed demand. American diners have stayed value-conscious amid difficult economic conditions. PF Chang's, Olive Garden parent Darden Restaurants Inc and other full-service chains are facing stiff competition from both McDonald's and so-called fast-casual chains like Chipotle Mexican Grill Inc and Panera Bread Co. Separately, PF Chang's also reported a 42 percent drop in first-quarter profit, due to higher ingredient and operating costs. Goldman Sachs and DLA Piper LLP are advising PF Chang's while Centerbridge is being advised by Wells Fargo Securities, Deutsche Bank Securities and Weil, Gotshal & Manges LLP. Link this Share this Digg this Email Reprints

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