What Is Buffalo Wild Wings Stock Price After Arby's Purchased It?

Arby's owner Roark Capital finalized a deal Monday to purchase Buffalo Wild Wings, according to reports. The transaction, which has reportedly been rumored for weeks, was unanimously agreed upon by both parties' Boards of Directors. The merger was valued at $2.9 billion.

The deal has resulted in a boost in the chicken wings seller's shares, which sat Tuesday at 6.6 percent alongside a $156 premarket trading price.

The agreement entailed that Arby's would be responsible for paying $157 per share in Buffalo Wild Wings stock. Arby's would also have to take on Buffalo Wild Wings' net debt, too.

"Buffalo Wild Wings is one of the most distinctive and successful entertainment and casual dining restaurant companies in America," Paul Brown, CEO of Arby's Restaurant Group, Inc., said in a statement Tuesday. "We are excited to welcome a brand with such a rich heritage, led by an exceptionally talented team. We look forward to leveraging the combined strengths of both organizations into a truly differentiated and transformative multi-brand restaurant company."

Buffalo Wild Wings' CEO Sally Smith said Tuesday that the merger "provides compelling value to our shareholders and is a testament to the hard work and efforts of our talented Team Members and franchisees."

Buffalo Wild Wings was set to become a privately-held company under Arby's through the new agreement, which was slated to begin during the first quarter of 2018.

Arby's has grown significantly since parting ways with Wendy's. Wendy's sold the fast-food chain in 2011 to Roark Capital for $430 million after it continued to struggle, but Wendy's retained 18.5 percent stake in Arby's following the transaction.

Wendy's executives confirmed in February that continuing to hold a stake in Arby's has paid off for them. Arby's overall sales began to surge, which helped to generate $320 million for Wendy's. This also allowed for Arby's value to spike by nearly 10 percent. The same-store improvements can be attributed to new menu items, advertising and the closing of particular locations.

Arby's has more than 3,300 restaurants in seven different countries. Founded in 1964, it has become the second-largest sandwich chain restaurant worldwide.