Inspire Brands to acquire Dunkin’ Brands
Inspire Brands, Inc and Dunkin’ Brands Group, Inc, parent company of Dunkin’ and Baskin-Robbins, announced on 30 October that they have entered into a definitive merger agreement under which Inspire will acquire Dunkin’ Brands in a transaction valued at approximately USD $11.3 billion including the assumption of Dunkin’ Brands’ debt.
Atlanta, Georgia-based Inspire is a multi-brand restaurant company with a current portfolio that includes more than 11,000 Arby’s, Buffalo Wild Wings, SONIC Drive-In, and Jimmy John’s restaurants worldwide. With Canton, Massachusetts-based Dunkin’ in its portfolio, Inspire will become the second-largest restaurant operator in the United States.
Under the terms of the merger agreement, which has been unanimously approved by the Boards of Directors of both companies, Inspire will commence a tender offer to acquire all outstanding shares of Dunkin’ Brands for $106.50 per share in cash. This represents a premium of approximately 30% to Dunkin’ Brands’ 30-day volume-weighted average price and a premium of approximately 20% per share to Dunkin’ Brands’ closing stock price on 23 October 2020.
“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,” said Paul Brown, co-founder and CEO of Inspire Brands. “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. We are excited to welcome Dunkin’ and Baskin-Robbins’ employees, franchisees, and suppliers to the Inspire family.”
“[This merger] is a testament to our world-class group of franchisees, licensees, employees, and suppliers who have worked together to transform Dunkin’ and Baskin-Robbins into modern, relevant brands…I 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,” said Dave Hoffmann, CEO of Dunkin’ Brands.
“We are excited to bring meaningful value to shareholders who have been with us on this journey and believe that Inspire Brands, a preeminent operator of franchised restaurant concepts, will continue to drive growth for our franchisees while remaining true to all that is unique and special about the Dunkin’ and Baskin-Robbins brands.”
Following the successful completion of the tender offer, which will be subject to certain conditions, Inspire will acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price. The transaction is expected to close by the end of 2020.