Business

Burger chain Sonic to be acquired by Arby’s parent company in $2.3 billion deal

The parent company of Arby’s and Buffalo Wild Wings is acquiring burger chain Sonic in a deal valued at $2.3 billion, the companies announced on Tuesday.

The deal, which will pay Sonic shareholders $43.50 per share in cash, assumes all debt and represents a 19 percent premium on Sonic’s Monday close.The company’s stock rose more than 18 percent Tuesday, hitting an all-time high of $44.87 per share.

This acquisition adds to Inspire Brand’s portfolio of restaurants that also includes Rusty Taco. Inspire Brands is owned by private equity firm Roark. As part of the deal, Sonic, which has more than 3,500 restaurants and $4.4 billion in system sales, will become a private company and operate as a separate business unit.

The deal is set to close by the end of 2018.

Inspire Brands was formed in February 2018 after Arby’s acquired Buffalo Wild Wings. With the addition of Sonic, the company will have more than 8,000 restaurant locations and combined system sales in excess of $12 billion, according Inspire Brands.

“Sonic is a highly differentiated brand and is an ideal fit for the Inspire family,” Paul Brown, CEO of Inspire Brands, said in a statement.

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