Buffalo Wild Wings Inc. (NASDAQ: BWLD) shares saw a handy gain on Tuesday after it was announced that Roark Capital Group would be acquiring the chicken wing chain. While Roark Capital might not be a household name, the firm also owns Arby’s and Cinnabon.
Excluding Tuesday’s move, Buffalo Wild Wings was down about 5% year to date. And over the past 52 weeks, the stock is down closer to 14%. While this deal is only bumping the stock back up to roughly even for the year, it seems like a welcome way for investors to cut and run.
Under the terms of the agreement, Roark will pay $157 per share, or about $2.9 billion (debt included) total, for Buffalo Wild Wings.
Both boards of directors unanimously approved this deal and it is expected to close in the first quarter of 2018.
Following the close of the transaction, Buffalo Wild Wings will be a privately held subsidiary of Arby’s Restaurant Group and will continue to be operated as an independent brand. Paul Brown will serve as chief executive officer of the parent company.
Sally Smith, CEO of Buffalo Wild Wings, commented:
We are excited about this merger and confident Arby’s represents an excellent partner for Buffalo Wild Wings. This transaction provides compelling value to our shareholders and is a testament to the hard work and efforts of our talented Team Members and franchisees. 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.
Shares of Buffalo Wild Wings were last seen up about 6.4% to $155.70, with a consensus analyst price target of $135.73 and a 52-week range of $95.00 to $175.10.
100 Million Americans Are Missing This Crucial Retirement Tool
The thought of burdening your family with a financial disaster is most Americans’ nightmare. However, recent studies show that over 100 million Americans still don’t have proper life insurance in the event they pass away.
Life insurance can bring peace of mind – ensuring your loved ones are safeguarded against unforeseen expenses and debts. With premiums often lower than expected and a variety of plans tailored to different life stages and health conditions, securing a policy is more accessible than ever.
A quick, no-obligation quote can provide valuable insight into what’s available and what might best suit your family’s needs. Life insurance is a simple step you can take today to help secure peace of mind for your loved ones tomorrow.
Click here to learn how to get a quote in just a few minutes.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.