November 28, 2017 05:33 PM
Arby's Restaurant Group will acquire Minneapolis-based Buffalo Wild Wings in a deal valued at around $2.9 billion, the companies announced Tuesday.
The agreement, which a release states has been unanimously approved by both companies' board of directors, is expected to close during the first quarter of 2018. Once it does, Buffalo Wild Wings will be a privately-held subsidiary of Arby's Restaurant Group and will continue to operate as an independent brand.
The deal still requires the approval of Buffalo Wild Wings shareholders and "the satisfaction of customary closing conditions, including applicable regulatory approvals," according to the release.
Paul Brown, the chief executive officer of Arby's Restaurant Group, will serve as chief executive officer of the parent company.
Arby's Restaurant Group is a majority-owned affiliate of Roark Capital Group and is based in Atlanta.
"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 are excited to welcome a brand with such a rich heritage, led by an exceptionally talented team. We look forward to leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company."
"We are excited about this merger and confident Arby's represents an excellent partner for Buffalo Wild Wings," added a statement from Buffalo Wild Wings CEO Sally Smith. "This transaction provides compelling value to our shareholders and is a testament to the hard work and efforts of our talented Team Members and franchises. 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."
Shares of Buffalo Wild Wings jumped more than 6 percent in premarket trading Tuesday, according to the Associated Press.
Updated: November 28, 2017 05:33 PM
Created: November 28, 2017 10:23 AM
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