Wings. Beer. And Arby's.
The fast-food chain said Tuesday that it had reached a deal to acquire Buffalo Wild Wings, which promotes the slogan "wings, beer, sports" in its advertisements.
Arby's Restaurant Group will pay $2.4 billion in cash and assume the debt of Buffalo Wild Wings, which had been slumping amid the casual dining sector's struggles and the increasing cost of chicken wings.
"Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America,” Arby's CEO Paul Brown said in a statement.
“We are excited to welcome a brand with such a rich heritage, led by an exceptionally talented team. We look forward to leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company.”
Arby's private equity owner Roark Capital Group is backing the deal. Another major investor, Marcato Capital Management, has agreed to support it.
Minneapolis-based Buffalo Wild Wings has more than 1,250 locations in 10 countries.
Arby's has more than 3,300 in seven countries.
The deal, which had been rumored for weeks, calls for Arby's to pay $157 per share in Buffalo Wild Wings stock.
BWW shares jumped 6.5% in pre-market trading to $155.85 on Tuesday.
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