Roark Capital Group has made an offer of $150 per share, to buy Buffalo Wild Wings, according to a person familiar with the matter.
Roark Capital values the restaurant chain at more than $2.3 billion and wishes to buy the Buffalo Wild Wings, best known for its bar and chicken wing appetizers.
The person who unveiled the news asked not to be identified because the details are confidential. The offer was made on Monday, when Buffalo Wild Wings shares closed at $117.25, down $1.60 a share, the person said. Buffalo Wild Wings and Roark declined to comment on a potential deal person said.
Buffalo Wild Wings’ stock had collapsed 34 percent from $163 a share to $108 a share, throughout the last year. But after that in last month, it beats its third-quarter earnings expectations.
Roark Capital is a well-known player in the restaurant industry as it has invested in chains including Arby’s, Cinnabon, Carvel and Auntie Anne’s. Arby’s earlier this year tried purchase Popeyes Louisiana Kitchen.
Buffalo Wild Wings raised its earnings forecast last month. It is taking efforts to cut the cost by selling more boneless chicken wings instead of traditional variety.
Smith, who plans to retire by the end of the year, said last month, “We are optimistic these actions will deliver an improving bottom line.”
Such kinds of deals are slowed because restaurants have largely traded too expensively for financial buyers.
Competition is increasing and people prefer dining at home so that such challenges results in lowering the share prices.