- Roark Capital Group, which owns Arby’s, has agreed to buy Buffalo Wild Wings for about $2.9 billion.
- Buffalo Wild Wings will be a privately held subsidiary of Arby’s, whose CEO will stay in that same role for the combined entity.
Roark Capital Group, which owns Arby’s and Cinnabon, has agreed to buy Buffalo Wild Wings for about $2.9 billion.
The private-equity firm will pay $157 a share in cash for Buffalo Wild Wings, which is 34% above the company’s closing stock price on November 13, the day before Roark’s initial bid of $150 a share. The offer includes Buffalo Wild Wings’ net debt.
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.
“Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America,” Brown said in a statement. “We look forward to leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company.”
The merger comes on the heels of a proxy fight that Buffalo Wild Wings lost to the activist investor Marcato Capital Management earlier this year, resulting in the resignation of the longtime CEO Sally Smith. The company had come under pressure as rising chicken-wing prices started weighing on its bottom line.
It also follows Roark’s failed attempt to buy the fried-chicken fast-food chain Popeyes Louisiana Kitchen, which Restaurant Brands bought for roughly $1.8 billion.
Buffalo Wild Wings’ stock climbed 6.5% in premarket trading. It has surged 33% since Roark’s initial approach in mid-November.