Arby’s has the meats and now it has the wings.
The roast beef chain will acquire Denver-based Buffalo Wild Wings in a $2.9 billion deal.
Arby’s, which is mainly owned by a private equity firm, will pay a 38 percent premium over BWW’s stock market price prior to recent speculation over a possible merger.
BWW has been hit by rising prices for chicken wings that have become a staple at many restaurants. The company responded with training programs and an emphasis on “boneless wings,” a form of breast meat.
Delaware restaurants are owned by one of the company’s more successful franchises High 5. The Bear-based company has franchise rights for Delaware and a portion of Maryland.
High 5 recently relocated a restaurant in the Limestone Road-Kirkwood Highway area to Stanton, closer to major employers such as Christiana Care and JPMorgan Chase. Buffalo Wild Wings also has company-owned restaurants.
“Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America,” said Paul Brown, CEO of Arby’s Restaurant Group, Inc. “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.”
Arby’s, like BWW advertises heavily with its “We have the meats” slogan that makes vegans cringe.
“We are excited about this merger and confident Arby’s represents an excellent partner for Buffalo Wild Wings,” said Sally Smith, CEO of 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 deal 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.
Following the close of the transaction, BWW will be a privately-held subsidiary of Arby’s Restaurant Group, Inc. and will continue to be operated as a separate brand. Paul Brown will serve as Chief Executive Officer of the parent company.
