Inspire Brands, Inc., and Dunkin’ Brands Group, Inc., parent company of the Dunkin’ stores synonymous with donuts and Baskin-Robbins, have entered into a definitive merger agreement under which Inspire will acquire Dunkin’ Brands for approximately $11.3 billion including the assumption of Dunkin’ Brands’ debt. It works out to $106.50 per share in cash for the Dunkin’ stock.
Inspire is headquartered in Atlanta. Dunkin’ has its headquarters in Canton, Massachusetts. The merger announcement was made last night.
Currently there are more than 12,500 Dunkin’ and almost 8,000 Baskin-Robbins restaurants around the world. Both brand names are quite familiar in Westchester and Fairfield Counties. Dunkin’ operates in 60 countries and uses a franchise business model.
Inspire owns restaurant brands including more than 11,000 Arby’s, Buffalo Wild Wings, SONIC Drive-In, and Jimmy John’s restaurants worldwide, with some locations in Westchester and Fairfield. Its annual sales approximate $15 billion.
Dunkin’ stores feature coffees, espresso beverages, baked goods, and breakfast sandwiches served all day. Baskin-Robbins, the world’s largest chain of ice cream specialty shops, is known for its variety of “31 flavors” of ice cream, along with their creative ice cream cakes, milkshakes, and ice cream sundaes.
Following the completion of the transaction, Dunkin’ and Baskin-Robbins will be operated as distinct brands within Inspire. Under the terms of the merger agreement, which has been unanimously approved by the boards of directors of Inspire and Dunkin’ Brands, Inspire will commence a tender offer to acquire all outstanding shares of Dunkin’ Brands for $106.50 per share in cash. This represents a premium of approximately 30% to Dunkin’ Brands’ 30-day volume-weighted average price and a premium of approximately 20% per share to Dunkin’ Brands’ closing stock price on October 23, 2020.
Paul Brown, co-founder and CEO of Inspire Brands said, “By joining Inspire, these brands will add complementary guest experiences and occasions to our current portfolio. Further, 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.”
Dave Hoffmann, CEO of Dunkin’ Brands, said the announcement “is a testament to our world-class group of franchisees, licensees, employees, and suppliers who have worked together to transform Dunkin’ and Baskin-Robbins into modern, relevant brands. This team’s grit and determination has enabled us to deliver outsized performance and made our brands among the most elite in the quick service industry. I am particularly proud of our actions since March of this year. During the global pandemic, we have stood tall. We’ve had each other’s backs and are now stronger than ever.”
Following the successful completion of the tender offer, Inspire will acquire all remaining shares that have not been tendered by conducting a second-step merger at the same price. The transaction is expected to close by the end of this year.