2017 12:42AMArby's owner Roark Capital Group said on Tuesday it would buy Buffalo Wild Wings Inc. for $2.4 billion, adding to its growing portfolio of US restaurants after a bruising proxy fight over the direction of the chicken wing chain.
Buffalo Wild Wings had been a "star performer" in the sector for years but recently "lost their value proposition to families with kids", NPD Group restaurant industry analyst Bonnie Riggs said. But the chain has suffered with a trend away from casual dining, competition from other restaurants and an increase in the cost of chicken wings, CNN Money reported.
The investigation concerns whether the Buffalo Wild Wings board failed to satisfy its duties to the Company shareholders, including whether the board adequately pursued alternatives to the acquisition and whether the board obtained the best price possible for Buffalo Wild Wings shares of common stock.
Buffalo Wild Wings CEO Sally Smith said Arby's represents an "excellent partner" for the brand. Both companies' boards of directors unanimously approved the deal, which has been rumored for weeks. That's a 7 percent premium to Buffalo Wild Wings Inc.'s Monday closing price of $146.40.
The deal is expected to close during the first quarter of 2018 and is subject to approval of BWW shareholders and regulatory approvals.
It's the latest realignment involving Arby's, which was founded in 1964 and was once owned by Royal Crown Cola. "We look forward to leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company", Brown said. Its shares rose 6.3 percent to $155.55 in midday trading on Tuesday.
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