ICV Partners buys Buffalo Wild Wings franchisee DRH

ICV Partners has acquired Diversified Restaurant Holdings Inc, a franchisee for Buffalo Wild Wings.

ICV Partners has acquired Diversified Restaurant Holdings Inc, a franchisee for Buffalo Wild Wings. The value of the deal was approximately $130 million. As a result of the deal, DRH will no longer trade on the NASDAQ.

PRESS RELEASE

NEW YORK, March 12, 2020 – ICV Partners, LLC, a leading investment firm focused on lower middle market companies, announced today that it has completed the previously announced acquisition of Diversified Restaurant Holdings, Inc. (“DRH”), one of the largest franchisees for Buffalo Wild Wings® (“BWW”) with 64 sports bars across five states.

Concurrent with the completion of the transaction, JK&T executed a 15-store area development agreement to build new stores in agreed upon locations, and sold the BWW sports bars in Florida and Massachusetts to Inspire Brands, a multi-brand restaurant company whose current portfolio includes more than 11,200 Arby’s, Buffalo Wild Wings, SONIC Drive-In, Rusty Taco, and Jimmy John’s Sandwiches locations worldwide. ICV will combine the remaining DRH and JK&T Wings sports bars, which it acquired in October 2019, making the combined company the largest franchisee of BWW.

Ira Moreland, Managing Director of ICV, said, “We are very pleased to complete this transaction and are enthusiastic to deploy our expertise to help grow the Buffalo Wild Wings brand. DRH is a strong platform and the company has solidified its position in a number of important markets. In combination with our earlier investment in JK&T Wings, we now operate over 80 BWW restaurants across five states and look forward to working with the company’s management team to further build this strong platform in new geographies. Buffalo Wild Wings is a very well known and admired brand and we see tremendous opportunities ahead that will continue to enhance their operations as we embark on this next stage of growth.”

Kent Ward, Chief Executive Officer of JK&T, said, “This new partnership with ICV is an exciting move, as they have extensive experience in building and growing the companies in which they invest. ICV’s ownership brings additional resources and skills that will enable us to grow the BWW brand and help enhance the customer experience.”

ICV acquired DRH in an all cash transaction valued at approximately $130 million, including the assumption of outstanding indebtedness and transaction expenses. DRH’s common stockholders received $1.05 per share in cash. DRH will no longer be listed on NASDAQ.

Sheldon Howell, Principal of ICV, said, “As the largest Buffalo Wild Wings franchisee ICV believes strongly in the brand. We have experience building companies with multi-unit operations and look forward to applying significant resources and pursuing numerous growth avenues, including opening new restaurants and identifying select acquisitions, that will further expand this outstanding brand.”

In October 2019 ICV made a significant investment in JK&T Wings, a leading franchisee of Buffalo Wild Wings, in partnership with management. At the time of the investment, JK&T owned 42 BWW restaurants located primarily in Michigan, with additional locations in Louisiana and Massachusetts. Buffalo Wild Wings, founded in 1982, is the largest sports bar brand in the United States. Globally, Buffalo Wild Wings has more than 1,200 restaurants across 10 countries. Visit BuffaloWildWings.com.
Duff & Phelps acted as exclusive financial advisor to DRH and Dykema served as legal counsel. DLA Piper served as legal counsel for ICV in connection with the transaction.

About ICV Partners
Founded in 1998, ICV Partners is a leading private investment firm that supports management leaders of strong lower middle market companies. Over its first four funds, the principals of ICV have crafted a strong track record of helping companies expand their footprint and improve performance over the long term and across a variety of industries. Additional information is available at www.icvpartners.com.