Arby's to acquire Buffalo Wild Wings in $2.9B deal

A Buffalo Wild Wings restaurant is shown Tuesday Nov. 28 2017 in Valrico Fla

A Buffalo Wild Wings restaurant is shown Tuesday Nov. 28 2017 in Valrico Fla

Roark Capital Group has agreed to buy restaurant chain Buffalo Wild Wings Inc. for about $2.4 billion, adding to the private equity firm's stable of eateries that includes Arby's and Cinnabon.

There are 12 Buffalo Wild Wings restaurants and 41 Arby's locations in New Jersey.

The agreement entailed that Arby's would be responsible for paying $157 per share in Buffalo Wild Wings stock.

After the deal is completed, Buffalo Wild Wings will operate as a privately held subsidiary of Arby's Restaurant Group, with the CEO of Arby's, Paul Brown, holding that same role in the parent company, according to a release.

Arby's is majority owned by affiliates of Roark Capital Group, an Atlanta based private equity firm that focuses on investing in franchised and multi-unit businesses in the restaurant, retail, and other consumer sectors. "We are excited to welcome a brand with such a rich heritage, led by an exceptionally talented team".

The agreement has been unanimously approved by both companies' boards of directors.

The chain has faced its share of challenges in recent quarters.

Does vodka actually make you more aggressive?
The researches noted that the emotions were more likely to be felt by dependent drinkers versus casual drinkers. Men in particular were most likely to report feeling of aggression after consuming spirits .

As a publicly-traded company, Buffalo Wild Wings grew in locations and revenue at one of the strongest rates in the fast casual dining industry.

Buffalo Wild Wings, also known as B-Dubs, was facing huge pressure from activist investors to go through with the Arby's deal. Arby's overall sales began to surge, which helped to generate $320 million for Wendy's.

A leading culprit has been chicken wing prices.

Activist hedge fund Marcato Capital Management pressurized on the company to pursue strategies in a bid to boost its stock price.

The company's growth started to level off about three years ago and executives considered developing pizza and Mexican food restaurants.

Smith said in June she planned to retire by year's end, ending a 21-year-era.

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.