Inspire Brands to buy Sonic Corp in $2.3bn deal

Restaurant company Inspire Brands - the owner of Arby’s, Buffalo Wild Wings and Rusty Taco - has agreed to buy Sonic Corp in a $2.3bn deal that includes the assumption of Sonic’s net debt.

Under the terms of the deal, Inspire will pay $43.50 per share in cash for the drive-in restaurant chain, which represents a premium of around 19% to Sonic’s closing price on Monday and a 21% premium to the 30-day volume-weighted average.

Following completion of the deal, which has been unanimously approved by Sonic’s board of directors, Sonic will be a privately-held subsidiary of Inspire and will continue to be operated as an independent brand.

"Sonic is a highly differentiated brand and is an ideal fit for the Inspire family," said Inspire’s chief executive officer Paul Brown.

“We have tremendous respect for Sonic’s exceptional team of employees and franchise owners, who have built one of the industry’s most distinctive restaurant brands.

"We’re excited to build on Sonic’s momentum as we leverage our combined expertise and capabilities to better serve guests, further support team members and franchisees and drive long-term growth."

Sonic CEO Cliff Hudson said the "value-maximising transaction" validates the actions the company has taken over the last year to grow traffic and improve sales while delivering "differentiated offerings and superior guest service".

"This transaction delivers significant, immediate and certain value to Sonic shareholders, and the private ownership structure will provide important benefits to our guests, franchisees and employees," Hudson said.

At 1545 BST, Sonic shares were up 19% to $43.36.