Comprehensive M&A data with integrated detailed company information

ICV’s eyes glisten for Buffalo Wild Wings as its chews on DRH days after swallowing JK&T
Posted on Thursday, 07 November 2019 07:20
Private equity group ICV Partners has reached an agreement to acquire Diversified Restaurant Holdings (DRH), one of the largest franchisees of Buffalo Wild Wings, for an all-cash payment worth USD 130.00 million, including debt.

This deal comes two days after the buyout firm made a significant investment in JK&T Wings, another leading owner of the US’s largest sports bar brand.

DRH runs 64 bars and restaurants under the Buffalo Wild Wings name across five states, which will be merged with a newly-formed entity of ICV, following completion at the end of 2019 or early 2020.

The transaction remains subject to shareholder approval and the consent of Buffalo Wild Wings.

Under the terms of the agreement, ICV is paying USD 1.05 per item of stock held in cash, representing a premium of 123.4 per cent to DRH’s close of USD 0.47 prior to the announcement yesterday.

Both the board and controlling shareholders - Michael Ansley and Jason Curtis, owning a combined 34.0 per cent stake - have approved the deal, which follows a previously announced strategic review of alternatives.

Ansley, who is also the founder, chairman and acting chief executive of DRH, said: “This transaction validates the strength of our franchise, creates a strong future for our employees, and provides a significant platform from which ICV can continue to build, while also rewarding our stockholders for their commitment.

“Inspire Brands has reignited the sports bars with an improved menu, better customer experience and strong support for its franchisees. With the strength of ICV, our franchise can better leverage this effort and further the long history of BWW [Buffalo Wild Wings] customer loyalty.”

Last year, Buffalo Wild Wings was acquired by Arby’s Restaurant Group for USD 2.90 billion, with the combined company changing its name to Inspire Brands shortly after.

Zephyr, the M&A database published by Bureau van Dijk, shows that since this deal, the business has announced two other acquisitions; the first completed in December 2018 when it picked up drive-in restaurant chain Sonic for USD 2.30 billion.

This was followed by the takeover of gourmet sandwich eateries operator Jimmy John’s earlier this year for an undisclosed amount.

© Zephus Ltd