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Sonic to be Acquired by Inspire Brands in $2.3 Billion Transaction

Sonic to be Acquired by Inspire Brands in $2.3 Billion Transaction


OKLAHOMA CITY, OK AND ATLANTA, GA
Tuesday, September 25th, 2018

Sonic Corp. and Inspire Brands will be merging, with the former being acquired by the latter for $43.50 per share. The transaction is valued to be about $2.3 billion, including the assumption of Sonic’s net debt.

Paul Brown, CEO, Inspire Grands“Sonic is a highly differentiated brand and is an ideal fit for the Inspire family,” said Paul Brown, CEO for Inspire Brands. “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’ momentum as we leverage our combined expertise and capabilities to better serve guests, further support team members and franchisees, and drive long-term growth.”

Multi-brand restaurant groupe Inspire—which owns 4,700 Arby’s, Buffalo Wild Winds, and Rusty Taco locations all over the globe—will privately hold Sonic as a subsidiary after the completion of the transaction, as the newcomer continues to operate as an independent brand.

Approved by Sonic’s Board of Directors, the agreement represents a premium of about 19 percent per share to Sonic’s closing stock price on September 24, 2018—and a premium of around 21 percent to Sonic’s 30-day volume-weighted average price.

Cliff Hudson, Chief Executive Officer, Sonic Corp. “This value-maximizing transaction validates the actions we have taken over the last year to grow traffic and improve sales while delivering differentiated offerings and superior guest service,” said Cliff Hudson, Sonic Corp. CEO. “Our Board of Directors, taking into account the views of shareholders, conducted a comprehensive review of a wide range of strategic options to maximize shareholder value. 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.”

Sonic Corp. and Inspire Brands will be merging, with the former being acquired by the latter for $43.50 per share

The transaction is subject to the approval of Sonic shareholders and customary closing conditions, though it is expected to close by the end of the year.

“As one of the largest owner-operators of company-owned and franchised restaurant brands, Inspire appreciates the unique culture of collaboration between Sonic and our franchisees. Sonic franchisees are engaged in planning regarding technology, new products, and marketing programs, and the team at Inspire recognizes the central role our franchisees have played, and will continue to play, in Sonic’s success,” Hudson continued. “We look forward to working closely with Inspire, as we continue to provide made-to-order American classics, distinctive flavors, and the most personalized guest experience in our industry.”

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Sonic Corp.Inspire Brands