The private equity firm will buy Buffalo Wild Wings for $157 per
share, representing a premium of 7.2 percent to the chicken-wing
restaurant's Monday's close.
The shares were up 6.4 percent at $155.80 in premarket trading
The offer is a 34 percent 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.
Following the closing of the deal, expected during the first
quarter of 2018, Buffalo Wild Wings will become a privately held
unit of Arby's and operate as an independent brand.
Activist hedge fund Marcato Capital Management, which had put
pressure on the company to pursue strategies to boost its stock
price, said it would vote for the deal. Marcato won three seats
on the company's board in June.
Barclays served as financial adviser and White & Case LLP as
legal adviser to Arby's. Goldman Sachs & Co LLC served as
financial adviser and Faegre Baker Daniels LLP as legal counsel
to Buffalo Wild Wings.
(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by
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