Rumors have been circulating over the past few weeks that Roark Capital, who owns major fast food brands like Carl's Jr. and Arby's, was looking to add Buffalo Wild Wings into their arsenal. Those murmurings can now be put to rest, as the investment firm has officially acquired the sports bar icon.
An initial offer was reportedly made at a value of $2.3 billion, or just over $150 per share according to CNBC. The final terms of the deal, however, elevated that price to $157 per share, or $2.44 billion, USA Today reports. Roark Capital will also assume Buffalo's debt as part of the acquisition, bringing the final price to $2.9 billion, according to Nation's Restaurant News.
For Roark, the deal could not come at a better time. While Buffalo Wild Wings has been suffering from factors like a major chicken wing shortage, the price of America's favorite bar food has dropped about 20%, meaning that the cost of the restaurant chain's namesake is about to get a lot cheaper. Additionally, the chain's boneless wings deals and delivery options have been bolstering it in an era where casual, sit-down dining is hurting.
With Buffalo Wild Wings acquired, Roark will be adding another 1,200 restaurants into its conglomerate food empire, bringing its total to 29,000 locations that bring in $27 billion across it's vast list of owned brands. Bloomberg reports that the investment giant will slot BWW in as part of Roark-controlled Arby's Restaurant Group. While Arby's CEO Paul Brown will be in charge of the ubiquitous sports bar, the brand will remain independent from Arby's.
Roark's first task will likely be to improve on food and operations, a Bloomberg analyst claims, so you can definitely expect some culinary changes to come to Buffalo Wild Wings once the deal officially closes, which will likely happen early next year.