Inspire Brands Inc, Owners of Arby’s, Has Bought Hamburger Chain Sonic

Sonic acquisition

A Sonic acquisition has been announced today! Arby’s is buying the hamburger chain for $2.3 billion.

Sonic Acquisition

Inspire Brands Inc—a private equity-backed company that also recently bought Buffalo Wild Wings—is the parent company of Arby’s.

It seems Inspire was eager to scoop up Sonic (NASDAQ:SONC), as it paid 20% over the selling price, per share, on Monday.

The Sonic acquisition may have been an easy sale for its owners, as sales have been declining in recent years. Under new ownership, the chain will continue operating as normal across its 3,600 stores and will keep operations as an independent brand.

Founded in Oklahoma in 1953 by Troy Smith, Sonic is an American drive-in chain famous for its retro 1950’s style and carhops on rollerskates service.

Inspire has been Buying

Inspire is majority owned by Atlanta-based investment firm, Roark Capital. In recent years, the company has paid out mega bucks for food-chain restaurants. 

It purchased major stakes in Auntie Anne’s, Carvel, and Jimmy John’s, with the most recent acquisition being Buffalo Wild Wings, which it bought for close to $3 billion.

>> Dunkin’ Donuts will Rebrand to Just Dunkin’

Evolution

The food industry has been evolving greatly in recent years.

Attitudes have evolved; consumers are moving in their droves towards healthier food and drink options. This has cause brands like Pepsi (NASDAQ:PEP) to consider adding healthy snacks to its production line and may be one reason for Sonic’s falling sales.

Investors have evolved; Amazon (NASDAQ:AMZN)—the king of e-commerce—(rather surprisingly) jumped into this sector with its acquisition of Whole Foods in August. It will also be running Amazon Prime food deliveries through it.

Products have evolved; Coca-Cola (NYSE:KO) announced last week, that it may be creating cannabis-infused beverages to compete in a burgeoning marijuana industry across Canada and the US.

Evolving with the times is the key to survival in this game. Let’s hope this Sonic acquisition will give the company a new lease of life. 

Featured Image: depositphotos/wolterke

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