SCOTTSDALE, Ariz. - P.F. Chang's is being acquired and taken private in a deal valued at $1.09 billion

CEO Rick Federico said Tuesday that the deal with Centerbridge Partners LP will give the company greater flexibility in improving its restaurants. The Scottsdale, Ariz., company, which operates its namesake restaurants, Pei Wei Asian Diners, has been struggling to update its brand amid growing competition. Earlier this month, P.F. Chang's rolled out a new menu to lure more budget-conscious diners.

New York's Centerbridge Partners LP will buy shares of P.F. Chang's China Bistro Inc. for $51.50 each. The cash offer represents a 30 per cent premium over the company's Monday closing stock price. Shares of P.F. Chang's soared $11.79 or 30 per cent, to close at $51.48 Tuesday.

P.F. Chang's said Tuesday that its net income fell 41 per cent in the first quarter, as revenue at restaurants open at least a year declined.

For the three months ended April 1, the figure slipped 0.6 per cent at the company's namesake restaurants and 1.7 per cent at Pei Wei restaurants.

R.W. Baird analyst David Tarantino said that the company has been pursuing a wide range of turnaround initiatives after a sluggish performance last year. The company has been focusing on reducing portion sizes and improving price points at its Pei Wei restaurants and remodeling stores and enhancing service at its P.F. Chang's Bistros.

Net income for the latest quarter was $6.3 million, or 30 cents per share, down from $10.6 million, or 46 cents per share, in the same quarter last year. Excluding one-time gains and losses, net income was 35 cents per share for the recent quarter. Revenue edged up slightly to $318.9 million from $317.4 million.

Profit and revenue fell just shy of Wall Street predictions, according to FactSet.

Centerbridge will begin a tender offer for P.F. Chang's shares no later than May 15. In order for the deal to close, about 83 per cent of the shares need to be tendered. P.F. Chang's said it can also seek out competing bids until May 31.

The deal, which has been approved by the company's board, but remains subject to regulatory approval, is expected to close in the third quarter.

P.F. Chang's owns and operates 204 of its namesake restaurants and 171 Pei Wei locations in the U.S. The first P.F. Chang restaurant opened in 1993 in Scottsdale. The first Pei Wei restaurant opened in the Phoenix metro area in 2000.