Roark Capital Group acquires Buffalo Wild Wings for $2.4 billion

The development marks the latest purchase of a restaurant, in a streak of acquisitions by privately held firms in this industry.

On Tuesday,, following Roark Capital Group’s disclosure that it will be purchasing Buffalo Wild Wings Inc for $2.4 billion, the shares of Buffalo Wild Wings surged by 6.6% to $156 in premarket trading.

Private equity firm, Roark will buy Buffalo Wild Wings for $157 per share, which represents a premium of 7.2% to the restaurant’s Monday’s closing price.

Onn November, Roark had offered a 34% premium to the stock’s listing price on Nov. 13, the last trading day before media reports emerged that a private equity firm had made an offer of more than $150 per share.

This deal underscores the growing flurry of restaurant takeovers by private equity firms.

Last month, Ruby Tuesday, a casual dining chain, was purchased by NRD Capital, for nearly $335 million; Luxembourg-based JAB Holdings bought Panera Bread, a U.S. food chain as well as Krispy Kreme Doughnuts, in the last two years.

The value of this deal, including debt, comes to $2.9 billion.

Marcato Capital Management, an activist hedge fund, which had pressured Buffalo Wild Wings to pursue strategies to boost its stock price, said it would voe for the deal.

The company owns 6.4% of Buffalo Wild Wings and has three seats on its board.

After the closure of the deal, expected to do so by the first quarter of 2018, Buffalo Wild Wings will become a privately held unit of Arby’s and will operate as an independent brand.

While Barclays served as Arby‘s financial adviser, White & Case LLP served as its legal adviser. Faegre Baker Daniels LLP served as legal advisers to Buffalo Wild Wings and Goldman Sachs & Co LLC served as its financial advisers.


Categories: Creativity, Entrepreneurship, HR & Organization, Regulations & Legal, Strategy

Tags: , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: