Fast-food giant Arby’s Restaurant Group announced it has reached a deal to acquire Buffalo Wild Wings (BWW), for $2.4 billion in cash. The deal comes as casual dining is declining. Leading to that decline are Americans spending more time cooking at home and new food delivery options.
Buffalo Wild Wings has been reporting falling sales as it continues to lose customers to cheaper and faster chains. In the recent quarter, the chain has seen a 2.3% sales drop at its restaurants.
Arby’s confirmed that Buffalo Wild Wings would continue to operate as an independent brand. Arby’s Restaurant Group Inc. said it would pay $157 for each of the 15.51 million outstanding BWW shares. With BWW debt, the financial agreement between the food groups is approximately $2.9 billion
Private equity firm Roark Capital Group owns Arbys. The groups also has investments in Hardee’s and Jimmy Johns among others. The deal now awaits approval from BWW shareholders. Arby’s CEO Paul Brown’s statement following the announcement of the deal says:
“Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America,” Brown said. “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.”
Buffalo Wild Wings, with its headquarters in Minneapolis, Minnesota, has more than 1,250 locations in 10 countries. Arby’s has over 3,300 locations in seven countries. Shares of BWW saw $145 at close on Monday. Shares rose sharply with news of the merger, ending over $155 per share.
Several other food chains have recently been bought including Panera Bread, which was bought in July for more than $7 billion by JAB Holding Co. and Ruby Tuesday Inc. with a selling price of $146 million. Time will tell if Arby’s is able to turn around Buffalo Wild Wings.