US fast-food chain Arby's Restaurant Group to buy Buffalo Wild Wings for $2.4 bn

30 Nov 2017

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US fast-food chain Arby's Restaurant Group's owner Roark Capital Group struck a deal to buy sports bar chain Buffalo Wild Wings for $2.4 billion in cash.

Roark will pay $157 a share in cash, a 34-per cent premium to Buffalo Wild Wings' 13 November closing price, the day before Roark's initial bid of around $150 was reported by the media.

Roark will also take on Buffalo Wild Wings net debt of around $500 million, the companies said in a statement.

Funds advised by Marcato Capital Management, which owns about 6.4 per cent of Buffalo Wild Wings, have agreed to vote in favour of the acquisition.

Buffalo Wild Wings will become a subsidiary of Arby's and will continue to operate as an independent brand. Paul Brown, CEO of Arby's Restaurant Group, will serve in that role of the expanded company.

If Buffalo Wild Wings gets a superior offer and terminates the deal, it would have to pay Arby's $74 million, while if Arby's fails to conclude the deal, it would have to pay Buffalo Wild Wings $134 million.

Founded in 1982 in Columbus, Ohio by Jim Disbrow, Scott Lowery, and Bernard Spencer, Buffalo Wild Wings, has 1,238 casual dining restaurants and sports bars in the US, Canada, Mexico, the Philippines, the United Arab Emirates, Saudi Arabia, Oman and India. About half of the restaurants are franchises.

The chain is best known for Buffalo-style chicken wings along with over a dozen sauces, as well as a complement of other items such as chicken tenders and legs.

The chain's menu also features appetisers, burgers, tacos, salads, and desserts, along with beer, wine, and other beverages.

Founded in 1964 and based in Ohio, Arby's Restaurant Group is the second-largest quick-service fast-food sandwich restaurant chain in the US after Subway.

It has more than 3,367 restaurants in the US, Canada, Turkey, Qatar, India, Kuwait, and United Arab Emirates and employs around 80,000 people.

Roark Capital Group acquired Arby's Restaurant Group in July 2011 and owns 81.5 per cent of the company, while The Wendy's Company owns the remaining 18.5 per cent.

Roark Capital's portfolio includes controlling stakes in Arby's, Auntie Anne's, Carl's Jr., Cinnabon, Hardees, Jimmy John's, Naf Naf Grill, Schlotzsky's and Wingstop. It owns a minority stake in Wisconsin-based Culver's.

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