With the help of Roark Capital, Arby’s will take on one of the top casual dining restaurants.
Arby’s Restaurant Group will be adding a casual dining chain to its portfolio. According to a recent QSR Magazine article, Buffalo Wild Wings will be entering into a definitive merger agreement and ARG will acquire the chain for $2.9 billion, at $157 per share in cash. ARG is backed by Roark Capital, which has many other well-known brands in its portfolio including FOCUS Brands, CKE Restaurants, Jimmy John’s and Naf Naf Grill.
“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.”
While Buffalo Wild Wings will be a privately held subsidiary of ARG, it will operate as an independent brand. Since its start in 1982, the brand has grown from 220 units to 1,200 units worldwide after going public in 2003. Although in recent quarters, the chain has faced some challenges including increasing chicken wing prices and pressure from activist investor Marcato Capital Management LP to franchise more stores and replace CEO, Sally Smith.
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