Denny’s to be acquired and taken private in a deal valued at $620 million

(ASSOCIATED PRESS) – Denny’s said Monday that it’s being acquired by a group of investors in a deal that will take the breakfast chain private.

Denny’s board unanimously approved the deal, which values Denny’s at $620 million, including debt. Denny’s will be purchased by private equity investment company TriArtisan Capital Advisors, investment firm Treville Capital, and Yadav Enterprises, which is one of Denny’s largest franchisees.

Under the agreement, Denny’s shareholders will receive $6.25 per share in cash for each share of Denny’s common stock they own, or a total of $322 million. That represents a 52% premium to Denny’s closing stock price on Monday.

Denny’s shares jumped 47% in after-hours trading on Monday.

Denny’s was founded in 1953 in Lakewood, California, as Danny’s Donuts.