Arby's Restaurant Group and Buffalo Wild Wings have entered into a merger agreement under which Arby's will acquire BW3 for $157 per share in cash.
Buffalo Wild Wings has 1,250 locations, including metro-east restaurants in Edwardsville, Belleville and O'Fallon.
Following the closing of the deal, BWW will be a privately-held subsidiary of Arby's Restaurant Group, Inc. and will continue to be operated as an independent brand. Arby's would also have to take on Buffalo Wild Wings' net debt, too.
The deal comes as Buffalo Wild Wings has seen a recent increase in the cost of chicken, "although the cost is down 20 percent from its high", USA Today reported.
"We are excited to welcome a brand with such a rich heritage, led by an exceptionally talented team", Brown told Business Insider. It has already been approved by both companies' Board of Directors. The shares got a small boost in October when results for the fall quarter turned out better than expected and a large one two weeks ago when news emerged that McGuire was seeking a buyer. In the third, the company reported a net earnings decrease of almost 20 percent as its cost of sales rose to 30.8 percent of restaurant sales from 28.9 percent during the same quarter a year ago. Arby's overall sales began to surge, which helped to generate $320 million for Wendy's.
The company's growth started to level off about three years ago and executives considered developing pizza and Mexican food restaurants.
The activist shareholder, Mick McGuire of San Francisco-based Marcato Capital, for months told the company's shareholders he had a strategy to double or triple the company's value by 2021 and was in it for the long term.
Smith said in June she planned to retire by year's end, ending a 21-year-era.