Wendy's/Arby's Group, Inc. WEN, today announced a definitive agreement for the sale of Arby's Restaurant Group, Inc. to a buyer formed by Roark Capital Group. Wendy's/Arby's Group will retain an 18.5% ownership interest in the Arby's® business. Atlanta-based Arby's is the second largest quick-service sandwich chain in the U.S. with more than 3,600 restaurants systemwide. Roark Capital Group is an Atlanta-based private equity firm that focuses on investing in franchise, brand management and restaurant companies. Wendy's/Arby's Group had previously announced that it was exploring strategic alternatives for Arby's.
The aggregate transaction value is estimated to be $430 million. The terms of the agreement provide for Wendy's/Arby's Group to receive at closing approximately $130 million of cash, subject to customary adjustments, and retain an 18.5% common stock interest in the Arby's business expected to be valued at approximately $30 million. The buyer will assume approximately $190 million of Arby's-related debt, consisting primarily of capital lease and sale-leaseback obligations. The terms of the transaction will trigger an income tax benefit to Wendy's/Arby's Group valued at an estimated $80 million, which Wendy's/Arby's Group currently expects to realize over the next few years.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in