A restaurant conglomerate will acquire Accredited Home Lenders Holding Co.
The San Diego-based subprime lender announced today Lone Star U.S. Acquisitions LLC will acquire the company.
Lone Star's holdings include Lone Star Steakhouse & Saloon, Texas Land & Cattle Co.and Del Frisco's Double Eagle Steak House. It's parent company, Lone Star Fund V, says it was launched in 2005 with $5 billion to target "financial and real estate assets on a global basis, focusing on investments in secured and corporate unsecured debt, portfolios of distressed real estate and financially-oriented operating companies." The company currently manages more than $13.3 billion.
Accredited shareholders will receive $15.10 per share in cash from the deal, which has been unanimously approved by its board and is expected to close during the third quarter. Shares of Accredited, which had traded as high as $53.45 a year ago, closed at $13.76 Friday.
"We believe this agreement is the best alternative available to protect shareholder value and provide the capital we need to support the company's business over the long-term," Accredited Chairman and CEO James A. Konrath said in the statement.
"With our additional experience and capital, we are confident that Accredited can successfully manage through the current industry dynamics," Len Allen, president of Lone Star Funds' U.S. operations, said in the statement.