Inspire Brands to Acquire Dunkin’ Brands Donut Company for $8.8 Billion

The American restaurant holding company which runs two-chains ‘Dunkin Brands Group’ to be sold to Inspire Brands Incorporated for $8.8 billion. On October 30 the company ‘Inspire’ announced that it was purchasing Dunkin’s Brands, owner of the Dunkin Donut and Basket Robbin’s ice cream chains and including the debt, the transaction will rise to $11.3 Billion.

Moreover, the Inspire Corporation which already owns the Arby’s Buffalo Wild Wings, Jimmy John’s restaurant chain and Sonic Drive-in said its all-cash deal to take the owner of Dunkin’s Donuts and Baskin-Robbins chains would estimate it at $106.50 a share.

Due to the coronavirus (COVID-19) pandemic and lockdowns, Dunkin and Baskin-Robbins Company have suffered a lot which resulted to temporary or permanent closures of stores, with the turnover of their parent company having fallen by 6% in total over the first nine months of the year.

Additionally, in recent weeks, the sales at Dunkin’ and Baskin-Robbins have boosted from their lockdown lows and meliorate by strong demand for its curbside pickup, drive-thru and delivery options. Also, on Thursday the company posted a surprise rise in the US comparable sales in the third quarter (Q3).

However, Inspire Brand Inc. which was established in 2018 by private equity firm Roark Capital has a portfolio of more than 11,000 restaurants whereas Dunkin’ Brands runs 12,900 restaurants and more than 8,000 Baskin-Robbins stores around the world. By adding both the companies we have a total of more than 31,600 restaurants with amalgamated sales of $26 billion and 6, 00,000 employees.

Inspire Brand Chief executive officer Paul Brown said, They will strengthen Inspire through their scaled international platform and robust consumer packaged goods licensing infrastructure, as well as add more than 15 million loyalty members.

Lastly, under the terms of the deal, the Inspire Brand will pay $106.50 per Dunkin’ Brands share in cash.

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