Rubio's Bid by Mill Road (NASDAQ:RUBO) $85M(MarketCap)

Stock up 12% Today $8.47company said in a regulatory filing.
With the start of a consumer spending recoveryMill Road's offer is an all cash transaction valued at
and greater access to capital, private equity firms$8.70/share, representing a premium of about
have lately been showing renewed interest in14% to Rubio's Friday closing price of $7.66. Ralph
restaurant companies. Seven months ago, Rubio'sRubio, founder and chairman of Rubio's, Chief
rejected an offer of an unsolicited buyout of $8 aExecutive Daniel Pittard, and private equity firm
share, a 33% premium to its then stock price. MillRosewood Capital collectively own about 24% of
Road Capital, L.P., a private investment firm basedthe company's outstanding shares. They have all
in Greenwich, Connecticut, has announced itscommitted to vote in favor of the proposed deal
desire to acquire Rubio's Restaurants, Inc. Thewith Mill Road Capital. The transaction has been
primary goal of Mill Road Capital is to directly ownunanimously approved by Rubio's board and the
"a diversified group of businesses that generatedeal is expected to close during the third quarter
cash and consistently earn above-average returnsof this year. Mill Road will acquire all of Rubio's
on capital". Rubio's, which operates more than 195outstanding shares in this cash merger transaction,
restaurants in California, Arizona, Colorado, Utah,and the aggregate transaction value is
and Nevada, has reported a first quarter profit ofapproximately $91million. After the announcement
$367,000, or 4 cents a share; up from $245,000,of this takeover, Rubio's shares rose 12% to a 2
or 2 cents a share, a year earlier. It currentlyyear high of $8.60 in morning trading Monday in
owns about 5% of Rubio's outstanding shares, thethe NASDAQ.