Buffalo Wild Wings’ (NASDAQ: BWLD) shares rose by 6.6 percent during pre-market hours on Tuesday after the American sports bar restaurant entered into a definitive agreement with Arby’s owner, Roark Capital, to be acquired for $2.9 billion.
Under the agreement, Roark has purchased Buffalo Wild Wings shares for $157 per share, as well assuming the chain’s net debt. The premium represents a 38 percent of Buffalo Wild Wing’s of the stock’s price on November 13.
Earlier, Roark had made a bid to acquire Buffalo Wild Wings but according to sources then, the bid was approximately $2.3 billion. After the bid had been released, shares surged by 28 percent.
Roark reportedly bidded on Buffalo Wild Wings after its takeover attempt for Popeyes Lousiana Kitchen fell through earlier in the year. Even without the Popeyes acquisition, Roark still owns other major franchises such as Carvel, Carl’s Jr. and Arby’s.
“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,” said Sally Smith, CEO of Buffalo Wild Wings.
The transaction is expected to close during the first quarter of 2018, following the closing, Buffalo Wild Wings will become a privately-held subsidiary of Arby’s Restaurant Group. Buffalo Wild Wings will still operate as an independent brand. Paul Brown will be the acting CEO.
“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,” added Smith.