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Arby's parent company, Inspire Brands, is acquiring the Sonic Burger Chain.
On Tuesday, Inspire Brands announced it is buying the hamburger brand for $ 2.3 billion, including debt. At $ 43.50 per share, the acquisition will rise to $ 1.57 billion in cash. The transaction represents a premium of about 19% per share compared to Sonic's closing price on Monday.
Sonic – known for its burgers, original menus and numerous beverage options – is the largest chain of vehicles in the United States, with more than 3,600 locations. The chain will continue to operate as an independent brand from the Oklahoma City headquarters.
Inspire Brands was created in February, following the acquisition of Buffalo Wild Wings by Arby. With this transaction, the Inspire Brands portfolio, which includes Arby, Buffalo Wild Wings and Rusty Taco, will encompass more than 8,000 sites with combined system sales exceeding $ 12 billion, according to figures provided by the company.
"Sonic has focused on innovation, especially in digital technologies for customers," Inspire Brands said in a statement. "In addition, its menu, especially its beverage innovation, is truly unique – each of these areas represents a great growth opportunity for Inspire's current brands."
Sonic has deployed mobile orders in the US this summer. The chain is known for iconic menu items such as Cherry Limeade, Ocean Water Slush and Coney Hot Dog, as well as new innovations such as this summer's Pickle Juice Slush.
"We can take advantage of all these types of extreme products, while other brands can not," said Scott Uehlein, vice president of innovation and product development at Sonic, at Business Insider last week.
Earlier this year, Inspire Brands CEO Paul Brown told Business Insider that the company was looking to acquire more brands that would serve separate customers.
"Across the spectrum, even in QSR, we would like brands to be as complementary as possible," said Brown. "You do not want brands to overlap, it's more difficult from an internal point of view, you want to keep lines between brands, and if they get too close, it becomes more difficult to manage." "
The transaction is expected to close by the end of 2018.
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