Inspire Brands, the holding company of Arby’s and Buffalo Wild Wings, is acquiring US burger chain Sonic Corp in a $2.3 billion deal.
Sonic, which operates more than 3,500 restaurants, will continue to be operated as an independent brand once the deal is completed.
Inspire Brands was founded earlier this year by Roark Capital after the investment firm’s Arby’s bought Buffalo Wild Wings for $2.9 billion. It currently operates 4,700 restaurant locations worldwide.
Last month The Wendy’s Company offloaded its 12.3% stake in Inspire Brands back to the company for $450 million.
Inspire Brands CEO Paul Brown said: “Sonic is a highly differentiated brand and is an ideal fit for the Inspire family. We have tremendous respect for Sonic’s exceptional team of employees and franchise owners, who have built one of the industry’s most distinctive restaurant brands.
“We’re excited to build on Sonic’s momentum as we leverage our combined expertise and capabilities to better serve guests, further support team members and franchisees and drive long-term growth.”
Sonic Corp CEO Cliff Hudson said: “This value-maximising transaction validates the actions we have taken over the last year to grow traffic and improve sales while delivering differentiated offerings and superior guest service.
“Our board of directors, taking into account the views of shareholders, conducted a comprehensive review of a wide range of strategic options to maximise shareholder value. This transaction delivers significant, immediate and certain value to Sonic shareholders, and the private ownership structure will provide important benefits to our guests, franchisees and employees.
“As one of the largest owner-operators of company-owned and franchised restaurant brands, Inspire appreciates the unique culture of collaboration between Sonic and our franchisees. Sonic franchisees are engaged in planning regarding technology, new products and marketing programmes, and the team at Inspire recognises the central role our franchisees have played, and will continue to play, in Sonic’s success.
“We look forward to working closely with Inspire as we continue to provide made-to-order American classics, distinctive flavours and the most personalised guest experience in our industry.”
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