Buffets Inc. to Buy Ryan’s for $876 Million

Buffets Inc., owner of HomeTown Buffet, agreed to buy Ryan’s Restaurant Group Inc. for $876 million to create the largest U.S. buffet restaurant chain.

Ryan’s shareholders would receive $16.25 in cash for each share they own, 45% more than Ryan’s closing price Monday. The purchase price includes debt. The combined chain would have more than $1.7 billion in annual sales from 675 restaurants.

Eagan, Minn.-based Buffets, co-owned by senior management and private equity firm Caxton-Iseman Capital Inc., owns eateries mostly in the North and West. Greer, S.C.-based Ryan’s is concentrated in the South.