Arby's announced Tuesday morning, November 28 that it was adding popular chain restaurant Buffalo Wild Wings to its fold in a deal valued at about $2.4 billion.
Under the terms of the transaction, affiliates of Roark Capital Group will pay $157 a share for Buffalo Wild Wings, just a few dollars more than the $150 price that the company traded at on the day Marcato and McGuire won the proxy battle in June. Forbes forecasts the agreement will become official in early 2018 once the process is completed. The per-share offer is 38 percent higher than Buffalo Wild Wings' 30-day average stock price as of November 13, the last trading day before speculation about the merger began.
The agreement has been unanimously approved by both companies' boards of directors.
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The pair split in October after their relationship "just fizzled and ended amicably", a source told US Weekly at the time. Speaking after the Thanksgiving holiday, an insider explained: "They both spent Thanksgiving with their families".
This sort of acquisition springs to mind visions of combining the best qualities of both chains, but there's no public blueprint of exactly what Arby's is going to do with their near $3 billion purchase. We're talking chain restaurant hullabaloo, so who wouldn't want to weigh in with a verdict? The battle caused longtime Chief Executive Officer Sally Smith to announce her resignation.
Minneapolis-based Buffalo Wild Wings is spread across 1,250 locations in 10 countries. The rebound at Arby's has come as diners turn away from so-called casual dining chains like Buffalo Wild Wings, where customers typically sit down and are served by waiters. "This transaction provides compelling value to our shareholders". "We are confident that the strength of our two industry-leading brands, under the sponsorship of Roark Capital-an experienced restaurant and food service investor-will enable us to capitalize on significant growth opportunities in the years ahead". In the third, the company reported a net earnings decrease of almost 20 percent as its cost of sales rose to 30.8 percent of restaurant sales from 28.9 percent during the same quarter previous year. Restaurant level profit fell from 17.6 percent of restaurant sales during Q3 2016 to 16.6 percent of restaurant sales this year.
A leading culprit has been chicken wing prices.