In one of the largest restaurant deals in more than a decade, the parent company of the Dunkin’ and Baskin-Robbins chains is going private.
Dunkin’ Brands has agreed to be acquired by Inspire Brands, whose portfolio includes Buffalo Wild Wings, Arby’s, Sonic Drive-In, and Jimmy John’s, for $106.50 per share in cash in a deal valued at $11.3 billion, including debt. The acquisition did not come cheap: The deal represents a premium of approximately 20% per share to Dunkin’ Brands’ closing stock price on October 23.
Inspire Brands, which is a holding company backed by private equity firm Roark Capital, operates more than 11,000 restaurants. It will more than double its footprint by buying Dunkin’, which operates more than 12,500 Dunkin' and almost 8,000 Baskin-Robbins restaurants worldwide.
Following the completion of the transaction, Dunkin’ and Baskin-Robbins will be operated as distinct brands within Inspire.
“Dunkin’ and Baskin-Robbins are category leaders with more than 70 years of rich heritage, and together they are two of the most iconic restaurant brands in the world,” said Paul Brown, co-founder and CEO of Inspire Brands. “By joining Inspire, these brands will add complementary guest experiences and occasions to our current portfolio.
Dunkin’ Brands generated $74 million in profits in the third quarter, up about 2% from a year earlier.
“Today’s announcement is a testament to our world-class group of franchisees, licensees, employees, and suppliers who have worked together to transform Dunkin’ and Baskin-Robbins into modern, relevant brands,” said Dave Hoffmann, CEO of Dunkin’ Brands. “This team’s grit and determination has enabled us to deliver outsized performance and made our brands among the most elite in the quick service industry. I am particularly proud of our actions since March of this year. During the global pandemic, we have stood tall. We’ve had each other’s backs and are now stronger than ever."