Buffalo Wild Wings (NASDAQ:BWLD) stock was on the rise today on news of a merger agreement with Arby’s.
The agreement between the two will have Arby’s acquiring Buffalo Wild Wings for $157 per share. This represents a 38% premium to BWLD stock’s 30-day volume-weighted average price as of Nov. 13, 2017. The total value of the agreement is $2.9 billion when including BWLD’s net debt.
Arby’s will be paying for Buffalo Wild Wings with cash. The financing for the deal is coming from Roark Capital Group, which owns a majority of Arby’s. Once the transaction is complete, Buffalo Wild Wings will act as a privately-held subsidiary of Arby’s.
The Board of Directors at both Arby’s and Buffalo Wild Wings are giving their unanimous support to the deal. The deal still needs to complete customary closing conditions, as well as get approval from regulators and shareholders of BWLD stock. Some funds advised by Marcato Capital Management with a 6.4% stake in BWLD have agreed to vote in favor of the deal.
So long as nothing goes wrong, Buffalo Wild Wings and Arby’s are expecting the deal to close during the first quarter of 2018.
Roark Capital Group has reportedly been in talks with Buffalo Wild Wings over the last couple of weeks about a buyout. Previous reports claim that the company first offered $150 per share for the company. Another report that came out on Sunday said the offer was increased to $155 per share as the firm pushed forward to outbid other companies.
BWLD stock was up 6% as of Tuesday morning.
As of this writing, William White did not hold a position in any of the aforementioned securities.