Seminole Tribe to Buy Hard Rock Cafe Chain
The Seminole tribe of Florida is buying the Hard Rock Cafe business from the Rank Group for $965 million, the two groups announced this morning. Rank also announced that when the sale is completed, $689 million will be returned to shareholders through a special dividend of about $1.28 per share.
"This is a proud moment for the Seminole tribe of Florida and for all Indian tribes," Seminole tribe Chairman Mitchell Cypress said in a statement. "It is also an opportunity for the Seminole tribe to diversify its business operations and help a very successful company to achieve even greater growth."
The deal gives the Seminoles control of 124 Cafe restaurants in 40 countries around the world, two casino hotels, and two Hard Rock Live concert halls, in addition to the world's largest collection of rock-and-roll memorabilia. The Rank Group, however, will retain ownership of the original Hard Rock Cafe, which opened in London in 1971.
The American Indian tribe already manages two Seminole Hard Rock Casinos—one in Tampa and the other in Hollywood, Fla.—as well as several other Florida casinos. These gaming businesses account for about 90 percent of the tribe's annual budget.
Last year, the Hard Rock group generated $493 million in revenue. The purchase, which is subject to shareholder approval, is scheduled to be completed in March.