Confirmed: Inspire Brands To Buy Dunkin’ Brands (DNKN) For $11.3 Billion

By Amit Chowdhry ● November 1, 2020
  • Inspire Brands has confirmed it is buying Dunkin’ Brands Group, Inc. (NASDAQ: DNKN) — the owner of Dunkin’ and Baskin-Robbins — for $11.3 billion. These are the details.

Inspire Brands has confirmed it is buying Dunkin’ Brands Group, Inc. (NASDAQ: DNKN) — the owner of Dunkin’ and Baskin-Robbins — for $11.3 billion. This is one of the largest deals ever in the restaurant industry.

Inspire Brands is a multi-brand restaurant company that has a portfolio of more than 8,400 Arby’s, Buffalo Wild Wings, SONIC Drive-In, and Rusty Taco restaurants. Inspire Brands will be taking Dunkin’ Brands Group private at $106.50 per share. This represents a 20% premium over the closing price of October 23 before reports of the deal sent the stock price surging.

Inspire Brands is backed by Atlanta-based private equity firm Roark Capital. And Inspired Brands launched in 2018 through the merger of Arby’s and Buffalo Wild Wings. And the company acquired a number of Sonic and Jimmy John’s restaurants. The Dunkin’ deal is expected to close by the end of the year.

The Inspire deal is happening about 9 years after Dunkin’ went public. Dunkin’ was sold in 2006 by Pernod Ricard to a group of buyers, which included Bain Capital, Carlyle Group, and Thomas H. Lee Partners for $2.4 billion. And Dunkin’ went public again in 2011.

Bank of America Corp. had advised Dunkin’ on the deal. And Barclays Plc advised Inspire.

KEY QUOTES:

“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. We are excited to welcome Dunkin’ and Baskin-Robbins’ employees, franchisees, and suppliers to the Inspire family.”

— Paul Brown, Co-founder and Chief Executive Officer of Inspire Brands

“Today’s announcement 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. 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. 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. 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.”

— David Hoffmann, Chief Executive Officer of Dunkin’ Brands