Dunkin' Brands to go private in $8.76 billion deal by Arby's owner
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[October 31, 2020] By
Shubham Kalia and Nivedita Balu
(Reuters) - Inspire Brands Inc will buy
Dunkin' Brands Group Inc for $8.76 billion, the two companies said late
on Friday, bringing chains like Arby's and Dunkin' Donuts under the same
umbrella in one of the largest restaurant deals.
Inspire Brands, which owns Arby's, Buffalo Wild Wings and Sonic
Drive-In, said its all-cash deal to take the owner of Dunkin' Donuts and
Baskin-Robbins chains private would value it at $106.50 a share. That
represents a nearly 20% premium over Dunkin's last closing share price
on Oct. 23, before the New York Times first reported the deal talks.
Including debt, the deal is valued at about $11.3 billion, the companies
said.
Sales at Dunkin' and Baskin-Robbins have improved from their lockdown
lows in recent weeks, boosted by strong demand for its curbside pickup,
drive-thru and delivery options.
Dunkin' and Baskin-Robbins on Thursday posted a surprise rise in U.S.
comparable sales in the third quarter.
Dunkin' and Baskin-Robbins will operate as distinct brands within
Inspire, the companies said.
"We are excited to bring meaningful value to shareholders who ...
believe that Inspire Brands ... will continue to drive growth for our
franchisees while remaining true to all that is unique and special about
the Dunkin’ and Baskin-Robbins brands," Dunkin' Brands Chief Executive
Officer Dave Hoffmann said.
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Dunkin' Brands to go private in $8.76 billion deal by Arby's owner
Dunkin' Brands operates 12,900 Dunkin' restaurants and more than 8,000
Baskin-Robbins stores around the world. Inspire Brands, which was formed in 2018
by private equity firm Roark Capital as a holding company, has a portfolio of
more than 11,000 restaurants.
"They will strengthen Inspire through their scaled international platform and
robust consumer packaged goods licensing infrastructure, as well as add more
than 15 million loyalty members," Paul Brown, chief executive officer of Inspire
Brands, said.
The Wall Street Journal first reported the confirmation of deal.
Barclays was the financial adviser to Inspire, while BofA Securities advised
Dunkin’ Brands.
(Reporting by Shubham Kalia and Nivedita Balu in Bengaluru; Editing by Daniel
Wallis and Leslie Adler)
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