Morton's Steakhouse chain sold for $116.6 million

Tilman J. Fertitta, chief executive officer of Landry's Inc., agreed to buy Morton's Restaurant Group Inc. for $116.6 million, gaining the high-end steakhouse chain with six Chicago area restuarants.

The offer of $6.90 a share in cash is 34 percent more than yesterday's closing price, Fertitta, who already owned 5 percent of Morton's shares, said today in a statement. The deal, scheduled to be completed in February, will be financed through cash and debt.

Morton's, which opened its first restaurant in Chicago in 1978, said in March it was exploring a possible sale to boost shareholder value. The steakhouse increased menu prices last December and in January to help counter surging meat prices.

Morton's, based in Chicago, rose 32 percent to $6.80 at 9:01 a.m. in New York. In Illinois, Morton's has two restaurants in downtown Chicago and locations in Naperville, Northbrook, Rosemont and Schaumburg.

As part of the deal, Castle Harlan Partners III LP has agreed to tender the 28 percent of the shares it owns.

Landry's in November agreed to buy McCormick & Schmick's Seafood Restaurants Inc. for about $131.6 million after terminating an earlier offer. Houston-based Landry's also owns the Rainforest Cafe and Bubba Gump Shrimp Co. chains.

Morton's was founded by Klaus Fritsch and Arnie Morton, according to its website. The company owns and operates 77 of the namesake steakhouses in 64 cities across 26 states as well as six international locations, according to the statement.