The company which operates popular fast food chain Arby's, Inspire Brand Inc, is set to acquire the company responsible for Sonic Drive-In, Sonic Corp. The deal is valued at approximately $2.3 billion and is the latest in a string of recent, high-value fast food negotiations.
Inspire Brand Inc is a large player in the industry claiming ownership of chains such as Rusty Taco, and Buffalo Wings. The company is recognized for its ability to rehabilitate struggling fast food chains and is credited for reviving Arby's after the chain had experienced declining sales. Sonic has failed to keep up with competitors such as Burger King and McDonald’s. For eight consecutive quarters, it has produced declining same-store sales. The brand ultimately fell into debt.
In the new deal which was unanimously approved by Sonic's board, Inspire will take on Sonic's net debt, giving the company an opportunity to revive itself. Under Inspire's ownership, Sonic will be expected to continue operations as an independent brand. Inspire anticipates benefitting from the deal in an equally favorable fashion as the acquisition will add over 3,600 Sonic locations to the list of 4,700 restaurants already under its management.
Though the deal has received the green light from Sonic's board members, the transaction requires the approval of Sonic's stakeholders who have yet to make a final decision.
[via]