SOURCE: The Smith & Wollensky Restaurant Group

January 16, 2007 14:43 ET

Smith & Wollensky Receives Unsolicited, Highly Conditional Acquisition Proposal and Authorizes Special Committee to Review

NEW YORK, NY -- (MARKET WIRE) -- January 16, 2007 -- The Smith & Wollensky Restaurant Group, Inc. (NASDAQ: SWRG) announced today that on Friday evening, January 12, 2007, it received an unsolicited, highly conditional proposal from Landry's Restaurants, Inc. (NYSE: LNY) ("Landry's") to acquire the company at $7.50 per share. This followed previous preliminary discussions between the management of both companies that had terminated prior to a proposal having been provided to Smith & Wollensky's board. The Company's board of directors met on Monday, January 15, 2007, and authorized a special committee consisting of independent directors to consider and recommend to the board whether a transaction with Landry's on the terms proposed by Landry's is in the best interest of stockholders and this was communicated to Landry's on Monday, January 15, 2007. The special committee has retained Willkie Farr & Gallagher LLP as its legal counsel and is in the process of engaging a financial advisor to assist the committee in its evaluation of the proposal. No decisions with respect to the sale of the company have been made and there can be no assurance that the special committee will authorize the commencement of negotiations with Landry's.

As a matter of policy, the Company does not comment on or provide the market with updates as to the status of any informal expressions of interest or formal proposals or offers presented to the Company from time to time, or the course of discussions with any prospective counterparties, nor will it comment upon any rumors with regard to either of the foregoing or make a further announcement regarding the special committee's consideration of the proposal or other expressions of interest until such time, if ever, that it enters into a definitive agreement for a completed transaction or is otherwise required to make an announcement.

About Smith & Wollensky Restaurant Group

The Smith & Wollensky Restaurant Group develops and operates high-end, high-volume restaurants in major cities across the United States. The original Smith & Wollensky, a traditional New York steakhouse, opened in 1977 and is currently believed to be one of the largest-grossing à la carte restaurants in the country. Since its inception, the company has grown to include 14 restaurants, including Smith & Wollensky in New York, Miami Beach, Chicago, Las Vegas, Washington, D.C., Philadelphia, Columbus, Houston, and Boston. SWRG also operates several other restaurants in New York, including Cité, Maloney & Porcelli, Park Avenue Café, Quality Meats, and The Post House.

Except for historical information contained herein, the statements made in this press release regarding the Company's business, strategy and results of operations are forward-looking statements which are based on management's beliefs and information currently available to management. Readers are cautioned not to put undue reliance on such forward-looking statements, which are subject to a number of risks and uncertainties that could cause actual results to differ materially from such statements. Factors that may cause such differences include changes in economic conditions generally or in each of the markets in which the Company is located, unanticipated changes in labor or food costs, changes in consumer preferences, the level of competition in the high-end segment of the restaurant industry and the success of the Company's growth strategy. For a more detailed description of such factors, please see the Company's filings with the Securities and Exchange Commission. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Investor Contact:
    Allison Good
    The Smith & Wollensky Restaurant Group
    Phone: 212-838-2061
    Email: Email Contact