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Arby’s parent company is buying Sonic in a $2.3 billion deal

Original Content Publication Date: 09/25/2018

Summary

Largest drive-in chain in the US, Sonic, is being acquired by Inspire Brands for $2.3 billion including debts. Inspire Brands is currently the parent company of chains such as Buffalo Wild Wings, Arby’s, and Rusty Tacos, owning over 8,000 locations across the US. At $43.50 a share, the acquisition will amount to $1.57 billion in cash. Inspire Brands is looking to continue purchasing more brands in the future. 

Key Points

  • Inspire Brands is acquiring Sonic in a $2.3 billion deal that includes debt
  • Inspire Brands CEO, Paul Brown, stated that the company is looking to acquire more brands that serve distinct customers. With its exotic drink variety and unique drive-in structure, Sonic has a consumer base unique to any other chain. 

Discussion Questions

  1. What are the advantages and disadvantages of growth through acquisition?
  2. Why do you think it’s harder to manage brands “if they get too close together” as CEO of Inspired Brands Paul Brown stated?

REFERENCE

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