A private equity firm Roark Capital Group will pay $130 million in cash for Wendy's Arby's Group Inc. and assume $190 million in debt, according to a report in Seeking Alpha.
Wendy's also will receive an $80 million tax benefit and keep an 18.5 percent stake in Arby's. The full value of the deal, expected to close in the third quarter, is $430 million.
The company's new corporate name is The Wendy's Company, and the common stock will continue to trade on the New York Stock Exchange under the ticker "WEN."
"The sale of Arby's provides substantial benefits to our stockholders and we are pleased to have worked with Roark Capital on its successful completion," Roland Smith, president and CEO of The Wendy's Company, said in a company press release. "We congratulate Roark on the Arby's acquisition and we are pleased to retain an 18.5 percent common stock interest in the Arby's business. We believe in Arby's turnaround and look forward to being able to benefit from the brand's future successes."
"Our new corporate name and logo signals our commitment to the Wendy's brand following the sale of Arby's. We've incorporated the original Wendy cameo into our new Company logo and we're highlighting a phrase that's been a defining point of difference for Wendy's for more than 40 years - Quality is Our Recipe. We've added the phrase 'Worldwide' to our tagline to emphasize Wendy's global aspirations."
