Roark Capital-backed Inspire Brands gobbles up Dunkin’ Donuts, Baskin-Robbins in $11.3bn buyout

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Roark Capital-owned Inspire Brands is set for an $11.3bn buyout of Dunkin’ Donuts and Baskin-Robbins to join its existing restaurant brands Arby’s and Buffalo Wild Wings.

The $106.50 per share deal for Dunkin’ Brands Group is a 20% premium over the company’s last closing price on October 23, when news of the potential buyout appeared in the New York Times.

Inspire’s current portfolio already includes more than 11,000 Arby’s, Buffalo Wild Wings, SONIC Drive-In and Jimmy John’s restaurants worldwide, providing $15bn of annual sales.

They will be joined by more than 12,500 Dunkin’ Donuts shops and almost 8,000 Baskin-Robbins ice cream outlets.

Inspire Brands co-founder and CEO Paul Brown said, “Dunkin’ and Baskin-Robbins are category leaders with more than 70 years of rich heritage, and together they are two of the most iconic restaurant brands in the world.

“By joining Inspire, these brands will add complementary guest experiences and occasions to our current portfolio.

“Further, they will strengthen Inspire through their scaled international platform and robust consumer packaged goods licensing infrastructure, as well as add more than 15 million loyalty members.”

Dunkin’ Brands CEO Dave Hoffman added, “This team’s grit and determination has enabled us to deliver outsized performance and made our brands among the most elite in the quick service industry.

2I am particularly proud of our actions since March of this year. During the global pandemic, we have stood tall. We’ve had each other’s backs and are now stronger than ever.”

The transaction is expected to close by the end of 2020.

Barclays is serving as financial advisor to Inspire and Paul, Weiss, Rifkind, Wharton & Garrison is serving as its legal counsel.

BofA Securities is serving as exclusive financial advisor to Dunkin’ Brands and Ropes & Gray is serving as its legal counsel.

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