Surprising news came to coffee lovers alike last week, as Inspire Brands executed a deal to purchase Dunkin' Brands ($DNKN). The private-equity firm will pay $106.50 in cash for all of Dunkin' Brands' shares as well as their debt, which values the company $11.3 billion.
The Atlanta-based company is becoming one of the largest restaurant groups in the United States. Inspire will now have a stronger position in the breakfast market and boost its total sales, from $15 billion to about $26 billion.
Their portfolio of companies includes Buffalo Wild Wings, Arby's, Sonic, Jimmy John's, and Rusty Taco. Inspire is part of the private equity company Roark Capital Group, which backs Focus Brands (the owner of Auntie Anne's Pretzels, Cinnabon, CKE Restaurants, Carl's Jr., and Hardee's burger chains.)
Photo: Inspire Brands
If you owned Dunkin stock ($DNKN), you were probably quite happy. The acquisition will take Dunkin’ private, but enjoy the win if you were a shareholder.
Nobody saw this one coming, but the impact the pandemic had on restaurant sales shows that money talks. Per the company, Dunkin' Brands's systemwide sales fell 1.3% in the third quarter after tumbling 21% in the second quarter and franchisees closed 553 restaurants permanently. The deal is expected to close by end of the year.