Arby's restaurant owner Roark Capital Group will buy Buffalo Wild Wings (NASDAQ: BWLD) for $2.4 billion, months after an activist investor won seats on the restaurant's board following a bitter proxy fight.
The private equity firm will buy Buffalo Wild Wings for $157 per share, representing a premium of 7.2% to the chicken-wing restaurant's Monday's close.
The offer is a 34% premium to the stock price on Nov. 13, the last trading day before media reports said that Roark had made a takeover offer of more than $150 per share.
Including debt, the deal is valued at about $2.9 billion.
Said BWLD CEO Sally Smith, "We are excited about this merger and confident Arby’s represents an excellent partner for Buffalo Wild Wings
"This transaction provides compelling value to our shareholders and is a testament to the hard work and efforts of our talented Team Members and franchisees. 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."
The transaction is not subject to a financing condition and is expected to close during the first quarter of 2018, subject to the approval of BWW shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals. Buffalo Wild Wings will become a privately held unit of Arby's and operate as an independent brand.
BWLD began Tuesday trading at $155.93, up $9.53, or 6.5%, from Monday’s close, within a 52-week trading range of $95.00 to $175.10.
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