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Steakhouse chain to be sold

Wednesday, April 3, 2002 | 11:05 a.m.

WICHITA, Kan. -- Lone Star Steakhouse & Saloon Inc. said Tuesday it agreed to be acquired by an unnamed buyout firm for as much as $547 million.

The company, which operates a chain of casual-dining restaurants, said it entered a non-binding letter of intent to sell its common stock for $20.50 a share. The offer is a 3.6 percent premium to Lone Star's 30-day average stock trading price of $19.78 a share.

In the late 1990s some analysts considered the restaurant chain something of a high flier, but volume in the restaurants has slipped in recent years. However, some analysts now believe the company has stemmed its decline and is turning around.

Lone Star posted a first-quarter loss of $3.83 milion, or 14 cents a share, compared with net income of $8.24 million, or 34 cents a year earlier. Sales rose 3.5 percent to $149 million from $144 million.

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