The deal will have Yum! Brands paying a total of roughly $375 million for Habit Restaurants. That breaks down to an offering of $14 each for all issued and outstanding shares of HABT stock. This is a roughly 32.21% premium over the stock’s closing price of $10.51 on Friday.
Yum! Brands is expecting the impact of the Habit Restaurants acquisition to have a marginal impact on its adjusted EPS for 2020. The company’s expectations also include accretion to start in 2021 and continue to increase in the following years.
David Gibbs, CEO of Yum! Brands, says this about the deal.
“We’ve emerged from our three-year transformation stronger and in a better position to accelerate the growth of our existing brands and leverage our scale to unlock value from strategic acquisitions.”
Habit Restaurants’ Board of Directors is giving its unanimous support to the deal with Yum! Brands. This comes on the recommendation of a special committee that is made up of non-executive independent directors.
Habit Restaurants and Yum! Brands will have the complete customary closing conditions before the deal is complete. That includes approval from regulators and investors. If all goes well, the deal is set to close by the end of the second quarter of 2020.
HABT stock was up 32.25% and YUM stock was down slightly as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.