Roark Capital Group, the owner of Arby’s restaurant, will be acquiring Buffalo Wild Wings for $2.4 billion, or $157 per share.
Soon after the news was released, Buffalo Wild Wings shares were up 6.6% in pre-market trading.
Compared to the stock’s price on November 13th, the last trading day before it was revealed that Roark had made an offer of more than $150 a share, the $157 per share offer represents a 34% premium.
Marcto Capital Management, an activist hedge fund who recently won three seats on the company this past June, now owns 6.4% of Buffalo Wild Wings. The fund had been pressuring the company to pursue strategies that would raise its stock price and said it would vote in favor of the transaction.
The deal is expected to close during the first quarter of 2018. The company will become a privately held unit of Arby’s and will operate as an independent brand.
Disclaimer: We have no position in Buffalo Wild Wings (NASDAQ: BWLD) and have not been compensated for this article.