Tex-Mex chain Chuy’s is set to expand after being acquired by restaurant operator Darden Restaurants, in a roughly $605 million deal that the companies announced Wednesday afternoon.

Steve Hislop, CEO of Chuy’s Holdings, wrote to the chain’s employees that belonging to Darden’s family of brands, which includes popular casual-dining chains like Olive Garden and LongHorn Steakhouse, would allow the Tex-Mex chain to expand beyond its current location count, according to a filing with the Securities and Exchange Commission (SEC).

As of last month, the Tex-Mex chain has over 100 outposts across 15 states.

“Being part of Darden opens the door to accelerated growth, expanding Chuy’s footprint well beyond our current 101 locations,” Hislop wrote. “They will provide Chuy’s with the enhanced scale, strategic resources, and operational expertise needed to further enhance our offerings and customer experience.”

Fast Company reached out to Chuy’s and Darden for more details about how the expansion may unfold, but we did not hear back.

A big family of well-known chain restaurants

Darden currently owns over 2,000 restaurants nationwide across nine brands and has more than 190,000 employees, Hislop wrote. Chuy’s, which touts a “distinct menu of authentic, made-from-scratch Tex-Mex inspired dishes” after first opening in Austin in 1982, will become Darden’s first Mexican-restaurant chain amid “the growing popularity of Mexican food in the U.S.,” according to the SEC filing. 

Chuy’s is known for its fresh food, including handmade tortillas, as well as its “unchained” ambiance and eclectic features, like wooden fish hanging from the ceiling and an Elvis shrine, according to a Wednesday press release.

Darden agreed to acquire all of Chuy’s outstanding shares for $37.50 per share.

“The greatest competitive advantage that Darden offers our brands is our significant scale,” Rick Cardenas, Darden’s president and CEO, stated in the filing. “The addition of Chuy’s strengthens this scale, which in turn, will allow Chuy’s to continue its growth and successes.”

Cardenas said in a press release that Darden was attracted to Chuy’s because its “strong performance” and “growth potential” aligned with the restaurant operator’s “winning brand.” Over the past 12 months as of March 31, Chuy’s generated more than $450 in revenue.

Tough times as diners watch their dollars

Recently, both Chuy’s and Darden have been grappling with a decline in customer traffic as a result of consumers’ concerns about inflation. Earlier this month, investment bank Jefferies downgraded the Tex-Mex chain and the restaurant operator, explaining that they were losing sales traffic to casual diners, like Applebee’s, and fast-food promotions. 

The acquisition is slated to close later this year if Chuy’s shareholders approve of the deal.