Late Friday, Inspire Brands and Dunkin’ Brands Group announced one of the largest ever restaurant deals: a $8.76 billion acquisition deal which brings chains like Dunkin’ Donuts and Arby under the same umbrella.
Inspire brands, the owner of Arby’s, Sonic Drive-in and Buffalo Wings announced an all cash deal taking private ownership of the Baskin-Robbins chain. This would put the value of a share at $106.50. This indicates a premium value of almost 20%, considering it’s October 23 closing share price, before the deal was struck.
Recent sales at Baskin Robbins and Dunkin’ Donuts have grown, after lockdown woes, due to a great demand in delivery, drive-thru and curbside pickup options. They posted an unexpected rise in US sales, in the third quarter. They will maintain their brand as distinct brands within the Inspire group. The companies said that the deal has a value of approximately $11.3 billion including debt.
Dunkin’ Brands have 12, 900 Dunkin’ restaurants. They operate more than 8,000 Baskin Robbins stores worldwide. Formed in 2018 by Roark Capital, a private equity firm, Inspire Brands has a portfolio of over 11,000 restaurants worldwide. BofA securities were the advisers for Dunkin’ Brands while Barclays advised Inspire.