Arby’s Restaurant Group owner Inspire Brands said Tuesday it will buy the drive-in chain Sonic for about $1.57 billion in cash, bolstering its portfolio of restaurant brands that includes Buffalo Wild Wings and Rusty Taco.
Inspire has offered Sonic shareholders $43.50 for each share held, a 19 percent premium to the stock’s Monday close.
Sonic’s shares were trading just above the offer price at $43.60 in early trading.
Including debt, the deal is valued at about $2.3 billion, the companies said.
Inspire brands was formed by private equity firm Roark Capital as a holding company when Arby’s completed the acquisition of Buffalo Wild Wings earlier this year.
Roark bought a majority stake in Arby’s from Wendy’s Co in 2011 and purchased the remaining 12.3 percent last month.
SOURCE: Reuters, Uday Sampath