Roark will pay Wendy’s $130 million in cash and assume approximately $190 million of debt related to Arby’s. Along with the stock it retains and an estimated $80 million tax benefit that will be realized over the next few years, Wendy’s values the deal at around $430 million.
The deal will “allow us to devote our full attention and resources on the exciting growth opportunities we have at Wendy’s,” said CEO Roland C. Smith. The company says it expects to grow annual earnings by between 10% and 15% beginning in 2012.
Roark Group, which also owns Moe's Southwest Grill, Cinnabon and Seattle's Best Coffee, plans to invest $50 million through 2013 to provide additional liquidity to the brand. The company also recently acquired Il Fornaio (America) Corp., owner of Corner Bakery Cafe and Il Fornaio Restaurants and Bakeries. Arby's has a total of 3,600 locations.
Source: Forbes, Roark Group