Arby’s Restaurants Sold For $430 Million
The Wendy’s/Arby’s Group announced earlier today the sale of Arby’s Restaurant Group, Inc. to the Roark Capital Group, an Atlanta-based private equity firm.
By the numbers, the transaction value is estimated to be $430 million, with the Wendy’s/Arby’s Group to receive approximately $130 million of cash and retain an 18.5% common stock interest in the Arby’s business (expected to be valued at approximately $30 million). Arby’s is the second largest quick-service sandwich chain in the U.S. with more than 3,600 restaurants systemwide.
The sale is expected to provide “substantial value” to stockholders, according to Roland Smith, President and Chief Executive Officer of the Wendy’s/Arby’s Group. Particularly, the sale of Arby’s allows the group to focus more of its attention on the growing Wendy’s chain, the other major restaurant in their portfolio of fast food brands.
This is not to say Arby’s will necessarily go by the wayside. ROARK has a history of investing in food-related brands, particularly multi-unit chains and other well known corporations. As for the connection to the Wendy’s/Arby’s Group, executives say Arby’s will be reported as a discontinued operation in the group’s second quarter 2011 financial results.
A press release from Wendy’s/Arby’s further outlined their plans to flesh out their Wendy’s brand. Future opportunities mentioned included revitalization of their core menu, expanding breakfast, modernizing facilities, building new restaurants in the United States and pursuing global expansion.
Looks like Wendy’s is the focus here. Can you dig?
