Dunkin’s stock reaches new high after $ 11 billion acquisition deal – tech2.org

Dunkin’s stock reaches new high after $ 11 billion acquisition deal

The deal for the $ 11 billion acquisition of Dunkin ‘Brands Group is dear to Wall Street.

The donut chain’s share price reached a new all-time high on Monday after it announced plans to sell itself to Inspire Brands, a private equity-backed conglomerate behind Aribi and Buffalo Wild Wings.

Dunkin’s shares climbed nearly 6.5 percent to an intraday peak of $ 106.18, just shy of $ 106.50 per share that Inspire agreed to pay for a Massachusetts-based company in a deal valued at $ 11.3 billion, including Dunkin’s. Includes debt that will be incurred on the Inspire.

The acquisition will take Dunkin’s private and inspire a vast portfolio of quick-service restaurants to add more than 20,000 of its coffee shops and the Baskin-Robbins ice cream parlor, which will include more than 31,000 locations when the deal closes by the end of the year, Companies said.

The deal is “a testament to the work Dunkin and Baskin-Robbins put together to transform modern, relevant brands to millions of people every day around the world,” Dave Hoffman, CEO of Dunkin ‘Brands, noted for employees said in .

Dunkin ‘and Inspire – backed by Atlanta-based private-equity firm Roark Capital, announced the tie-up late Friday, five days after confirming they were publicly back to private ownership of Dunkin after nearly nine years Were discussing a deal to do. -Trade Company.

The takeover will give Inspire a strong foothold in the breakfast market and increase its total sales from the current level of $ 15 billion to $ 26 billion.

Inspire CEO Paul Brown said of Dunkin & Beskin-Robbins, “By joining Inspire, these brands will add complimentary guest experiences and opportunities to our current portfolio.”

The coronovirus epidemic marked Dunkin ‘and other restaurant chains in the first year, but the company reported a third-quarter sales decline of just 1.3 percent, a significant improvement from the previous quarter’s 20.8 percent drop. .

The company said Thursday that a 0.9 percent jump in sales at Dunkin ‘American stores was helped as customers spend more on large orders and specialty drinks such as espresso.

With post wires


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