Inspire Brands, a private equity backed firm that owns Arby’s and Buffalo Wild Wings, is paying nearly 20% more for Sonic than what shares were trading at on Monday.
Sonic() is famous for its quirky ads and retro 1950s-esque drive-in locations.
Inspire Brands, which has both company-owned and franchised restaurant brands, has agreed to acquire drive-in fast-food chain Sonic Corp. SONC, -0.13% for $43.50 per share in cash, or about $2.3 billion, including assumption of Sonic’s debt. Sonic joins Inspire’s portfolio, which includes more than 4,700 Arby’s, Buffalo Wild Wings and Rusty Taco restaurants. Inspire is majority-owned by affiliates of private-equity firm Roark Capital Group, which owns Arby’s. Sonic will become a privately-held subsidiary of Inspire Brands and will continue to operate as an independent brand.
Roark Capital, an Atlanta-based invesment firm, is the majority owner of Inspire. It has also purchased big stakes in Auntie Anne’s, Carvel and Jimmy John’s. Just last year Inspire paid nearly $3 billion for Buffalo Wild Wings.