A group of restaurant franchises in California and around the country will be overseen by a newly formed company known as Inspire Brands after Arby's Restaurant Group Inc. completed its acquisition of Buffalo Wild Wings Inc. The finalization of the $2.9 billion deal and formation of the new company was announced on Feb. 5. Arby's first revealed plans to acquire Buffalo Wild Wings in November 2017. The new company will also oversee R. Taco, which is a chain of 26 Mexican-themed fast-food restaurants acquired by Buffalo Wild Wings in 2014.
Inspire Brands will oversee the management and expansion of three distinct restaurant brands with more than 4,600 locations in 15 countries that generated combined sales in excess of of $7.6 billion in 2017. The CEO of the new company, who was formerly the CEO of Arby's Restaurant Group, said that working under Inspire's umbrella would provide Arby's, Buffalo Wild Wings and R. Taco with opportunities for expansion and allow the chains to lower their costs by taking advantage of economies of scale.
News of the deal may be greeted warmly by Buffalo Wild Wings franchisees. Inspire is owned by the Atlanta-based Roark Capital Group, which acquired Arby's in 2011. The chain of quick service restaurants had been struggling prior to the acquisition, but has since reported 20 consecutive quarters of same-store sales growth. Other restaurant groups owned by Roark Capital include Carvel, Cinnabon, Moe's Southwest Grill, Auntie Anne's and Carl's Jr. Inspire Brands will be based in Atlanta with a support center located in Minneapolis.
The announcement of this deal reveals how quickly acquisitions can be completed when the parties involved work together to reach an agreement. Attorneys with business law experience may be able to expedite complex transactions by anticipating issues that could cause complications and putting strategies into place to address them.
Source: RE Business, "Arby's Completes $2.9B Acquisition of Buffalo Wild Wings, Launches New Company", Kristin Hiller, Feb. 6, 2018Source: Restaurant News, "Arby's, Buffalo Wild Wings new parent Inspire Brands debuts", Bret Thorn, Feb. 5, 2018