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Roark takes a peck at Buffalo’
Posted on Tuesday, 14 November 2017 12:27
Shares in Buffalo Wild Wings jumped 27.9 per cent in after-hours trading after the Wall Street Journal (WSJ) reported Roark Capital, with help from Barclays as financial advisor, has tabled a takeover offer worth USD 2.30 billion.

The newspaper noted the private equity house made the USD 150.00 per share bid in order to add the casual dining and sports bar franchise to a portfolio that already includes sandwich chain Arby’s.

A person with knowledge of the matter later told Bloomberg that Buffalo has acknowledged the approach, which was made on 13th October at a 48.0 per cent premium to Buffalo’s then share price, but added the two have not held talks.

The rumoured takeover comes amid a spate of consolidation within the sector, including BDT Capital Partners and JAB’s completed takeover of Panera Bread for USD 7.50 billion in July.

Zephyr, the M&A database published by Bureau van Dijk, shows there have been 256 global acquisitions of companies operating in the restaurants and other eating places segment so far this year.

Another high-value deal involved Restaurant Brands International beating off competition from Roark for Popeyes Louisiana Kitchen, Zephyr shows.

Meanwhile, the latest rumour regarding an offer for Buffalo comes just months after the restaurant, known for its chicken wings and sauces, lost a bitter proxy battle with Marcato Capital Management.

As a result, the activist hedge fund won three board seats and chief executive Sally Smith announced she would retire by the end of 2017, bringing an end to her 14-year-leadership.

Minneapolis-headquartered Buffalo operated 638 and 617 company-owned restaurants, as at 24th September 2017 and 25th September 2016, respectively, and had 633 and 602 franchised restaurants.

The company was worth USD 1.82 billion in the markets yesterday, though its shares have lost 28.2 per cent of their value over the last 12 months.

© Zephus Ltd