Talks on Dunkin’ Donuts Sale Could Bring Company Private

CANTON- Dunkin’ Brands, parent company to Massachusetts based Dunkin’ Donuts and the Baskin-Robbins ice cream chain, has confirmed that the corporation is currently in talks to be taken over by ‘Inspire Brands’ in a blockbuster deal that would reportedly bring the coffee giant private.

The deal would add Dunkin’ to Inspire Brands’ vast portfolio of restaurant chains that include eateries such as Buffalo Wild Wings, Sonic, Arby’s and Jimmy John’s subs.

The news of a possible merger that was first reported by the New York Times states the deal would take Dunkin’ Brands to a price per share of about $106.50, according to two people “with knowledge” of negotiations.

Stocks in Dunkin’ soared quickly when the news of the possible takeover took place, vaulting more than 16% to close at $103.10 Monday, up $14.31.

Dunkin’ Brands is headquartered in Canton Massachusetts and is in control of over 21,000 “points of distribution” in 60 countries worldwide, including 13,000 Dunkin’ stores and 8,000 Baskin-Robbins outlets.

In 2019 the reported revenue for Dunkin’ soared to $1.37 billion in revenue in its 2019 fiscal year up 4% from the previous year, generating $242 million in net income.

For Atlanta-based Inspire Brands, they quickly placed themselves among the largest restaurant groups in the U.S with annual sales of more than $14 billion, large in part to its private equity company ownership by Roark Capital Group, also based in Atlanta.

Roark also backs Focus Brands — the owner of Auntie Anne’s Pretzels and Cinnabon — and CKE Restaurants, which owns the Carl’s Jr. and Hardee’s hamburger chains.

Inspire Brands declares itself, “a restaurant company unlike any other,” according to its website. “We’re mavericks and visionaries. We spark a culture of innovation that welcomes great ideas to thrive at every level,” the company states.

The Dunkin’ acquisition would give Inspire a spot in the breakfast category, which was the fastest-growing segment of the restaurant industry before the pandemic hit.

In 2020 as a result of the pandemic, Dunkin’ Brands revenue fell 20% in the second quarter, which forced it’s franchisees to permanently close 200 restaurants around the nation.

Dunkin’ Brands will not comment yet on when a possible deal could be reached.

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