Arby's closes deal for Buffalo Wild Wings, makes new company
Arby's completed its deal to buy Buffalo Wild Wings on Monday and created a new company named Inspire Brands that will run the chains.
Inspire Brands will oversee Arby's, Buffalo Wild Wings and a small chain with about 30 locations called R Taco. Arby's, known for its meaty sandwiches, has more than 3,400 restaurants; Buffalo Wild Wings has more than 1,200.
Several casual restaurant chains, including Buffalo Wild Wings, have been taken private recently as they lose customers to cheaper and faster chains. Another sit-down chain, Ruby Tuesday, was bought by private equity firm NRD Capital last year.
At Buffalo Wild Wings, which serves chicken wings in a sports bar atmosphere, a key sales figure has fallen in the past two quarters. Arby's had announced in November that it would pay $2.4 billion for Buffalo Wild Wings. When debt is included, the companies value the deal at $2.9 billion.
Inspire Brands, which is controlled by private equity firm Roark Capital, is based in Atlanta. Inspire Brands said it will have total sales of more than $7.6 billion a year. Arby's CEO Paul Brown will have the same title at the new company.