ORLANDO, FL (AP) -
Darden Restaurants, operator of the Red Lobster and Olive Garden chains, is buying Yard House USA for $585 million in cash.
The acquisition of the restaurant chain from private equity firm TSG Consumer Partners and other investors is expected to close by November.
Darden said Thursday that it expects the acquisition will initially hurt its earnings by 3 to 5 cents per share in the fiscal year 2013 through next May but help boost profits after that.
Yard House, based in Irvine, Calif., offers an array of draft beers and food like pizzas, steaks and salads. It has 39 restaurants in 13 states.
Darden shares fell $1.22, or 2.4 percent, in after-hours trading to $48.98.
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