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Dunkin’ Brands Preparing To Go Private in $8.8 Billion Deal

The reported $106 per share takeout price is a 19.4% premium to Friday's closing price.

Image source: Dunkin’ Brands

Dunkin’ Brands, which owns the Dunkin’ and Baskin Robbins chains, is in discussions to be acquired by Inspire Brands for $106 per share, a 19.4% premium to Friday’s closing price. The New York Times reported the talks on Sunday, citing sources with knowledge of the negotiations.

Inspire Brands is backed by private equity firm Roark Capital and owns a portfolio of quick-serve restaurants including Arby’s, Buffalo Wild Wings, Jimmy John’s and Sonic.

Dunkin’ Brands posted revenue last year of $1.37 billion and net income of $242 million. In the first six months of a coronavirus-impacted 2020, the company has reported $611 million of revenue and $89 million in net income.

The company dropped “Donut” from its name last year, as it has been shifting its focus more to coffee, taking on rival Starbucks more directly. More than half of Dunkin’s revenue is now derived from beverages.

Dunkin’ Brands confirmed that the reported discussions are occurring.


Source: Equities News

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