Deal Dispatch: Darden Cools On Bahama Breeze, NBA M&A Heats Up

New On The Block

Bahama Breeze may soon be gone with the wind.

Darden Restaurants DRI is considering selling the Caribbean-inspired chain or repurposing all its locations.

The decision comes after Darden closed 15 Bahama Breeze restaurants in May, leaving just 28. Guru Focus reported that CEO Rick Cardenas told analysts that future investments in the brand are off the table.

Initially launched in the 1990s, Bahama Breeze served up tropical vibes with dining options like coconut shrimp and empanadas. However, after a strategic review, Darden decided it was time to focus on other properties, such as the never-ending-pasta-bowl innovator Olive Garden.

Updates From The Block

Businessman Mark Walter has agreed to acquire a majority stake in the NBA's Los Angeles Lakers from the Buss Family Trust. Jeanie Buss will continue to oversee team operations. Walter, already a minority owner, also leads TWG Global, which holds stakes in several sports properties.

The Buss family has owned the Lakers since 1979, overseeing 11 NBA championships and shaping one of the most recognized franchises in global sports. The team has featured iconic players such as Magic Johnson, Kareem Abdul-Jabbar, Kobe Bryant, Shaquille O'Neal and LeBron James.

The deal is expected to close in late 2025, pending NBA approval and other standard conditions.

Guggenheim Securities is advising Walter, with legal support from Davis Polk & Wardwell LLP. ArentFox Schiff LLP represents the Lakers and the Buss Family Trust.

More Updates:

• Recall in 2021 how Best Buy BBY acquired remote care management platform Current Health. It’s now selling it back to co-founder Christopher McGhee for $400 million.
• Maserati isn’t for sale. That’s according to Stellantis STLA, the owner, which responded to a Reuters report.
• U.S. antitrust regulators approved Mars‘ proposed $35.9 billion purchase of snackmaker Kellanova K. In Europe, however, antitrust regulators are investigating the deal.
• New Zealand-based accounting software firm Xero will acquire U.S. bill-pay platform Melio for an initial $2.5 billion, according to the Wall Street Journal. Melio shareholders, including Accel and Thrive Capital, will receive $360 million in Xero shares. Xero, which reported approximately $1.26 billion in revenue for its last fiscal year, stated that revenue could double over the next three years, excluding anticipated synergies. Melio CEO Matan Bar will lead Xero's U.S. business post-acquisition.
• Bank of New York Mellon placed an offer for Chicago-based Northern Trust, which has a market value of more than $21 billion. The Trump administration has signaled a greater willingness to approve large banking deals, but few have been completed.
• Woody Johnson is the latest rich American to buy a different football club. The billionaire agreed to pay just $215 million for a “significant” stake in Premier League club Crystal Palace, Bloomberg reports. On the sell side is John Textor. Let’s hope Crystal Palace has better luck than the New York Jets, which has been under the miserable ownership of Johnson since January 2000.
• Unilever signed an agreement to acquire personal care brand Dr. Squatch from growth equity firm Summit Partners. The price tag was not disclosed, but Women’s Wear Daily reported that the company’s sales exceeded $400 million.

Off The Block

• The NBA’s board of governors approved the $1.5 billion sale of the Minnesota Timberwolves and WNBA's Minnesota Lynx from longtime owner Glen Taylor to an investment group led by entrepreneur Marc Lore and former MLB star Alex Rodriguez. The unanimous vote concludes a four-year back-and-forth process that included arbitration after Taylor attempted to cancel the deal earlier this year. Taylor, who bought the Timberwolves in 1994 to prevent a relocation to New Orleans, leaves after 31 years with the team. Lore and Rodriguez pledged to keep the teams in Minnesota.

• Parkland PKI, a Canadian fuel distributor, confirmed that shareholders voted in favor of a $9.1 billion takeover by Sunoco SUN. The deal will form America’s largest independent fuel distributor.

Bankruptcy Block

• You can still place bids on assets owned by Monster and CareerBuilder. The two online job search websites, which merged last year, filed for Chapter 11 bankruptcy. So far, JobGet is looking to buy at least one asset. Canada-based Valsoft Corporation and Canadian media firm Valnet are keen on acquiring others, including Military.com, which Monster bought in 2004 for $39.5 million. Tough competition is to blame for the restructuring, says CEO Jeff Furman, citing Indeed, LinkedIn, and Glassdoor. Private equity firm Apollo Global Management holds a minority stake in the company.

For last week’s edition of Deal Dispatch, click here.

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