Arby's restaurant owner Roark Capital Group will buy Buffalo Wild Wings for $2.9 billion, months after an activist investor won seats on the chicken wing restaurant's board following a proxy fight demanding management change. Fred Katayama reports.
Arby's owner, Roark Capital Group, is buying Buffalo Wild Wings for $2.9 billion, including debt. That's $157 per share, a 7 percent premium over the stock's Monday close. Buffalo Wild Wings will become part of Arby's, but it will continue to operate as an independent brand. The deal marks the end of a turbulent year for Buffalo Wild Wings. The company was under pressure from activist investor Marcato Capital Management to boost its share price. Its shares jumped on the news. Maxim Group's senior analyst Stephen Anderson. (SOUNDBITE) STEPHEN ANDERSON, SENIOR VICE PRESIDENT AND EQUITY RESEARCH ANALYST, MAXIM GROUP (ENGLISH) SAYING: "I think, overall, it is a good deal. We were not surprised to see Roark do this. I still do not rule out the possibility that there could be a competing bid for the company, but, at this point, we believe it represents fair value." Anderson says the restaurant industry is consolidating. In October, NRD Capital bought Ruby Tuesday for $335 million. And over the last two years, JAB Holdings took Panera Bread and Krispy Kreme Doughnuts private.