$70 million restaurant likely to change hands.
Steve’s breakdown: Between the unappetizing present creative and the fact that there’s going to be new owners, we’re thinking the Buffalo Wing Wings’ account will be changing hands.
MINNEAPOLIS, MN: Buffalo Wing Wings’ stock was on fire after it said Tuesday it was getting acquired by Arby’s for $2.4 billion.
Shares of the beer-and-wings chain surged as much as 6.5 percent to $155.95 in premarket trades — just shy of the roast beef-and-cheddar purveyor’s offer of $157 a share.
Buffalo Wild Wings CEO Sally Smith — who lately has taken heat from activist hedge fund Marcato Capital, which prodded her to step down— said the chain is “excited” about the merger.
“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,” Smith said.
Arby’s, which is backed by private equity firm Roark Capital, will pay $2.9 billion for Arby’s including the assumption of $500 million in debt.
The deal size represents a 38-percent premium to Buffalo Wild Wings’ 30-day volume-weighted average stock as of Nov. 13, which was when reports of Roark’s interest in the chain emerged.
“Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America,” Paul Brown, CEO of Arby’s Restaurant Group, said in a statement Tuesday.
Marcato Capital CEO Mick McGuire, which has a 6.4 percent stake in Buffalo Wild Wings and won three seats on the board in June, will vote in favor of the merger, according to the company’s statement.
The hedge fund declined to comment.