Roark Capital is paying about $130 million in cash to buy roast beef sandwich chain Arby’s Restaurant Group Inc., Reuters reported. Current owners Wendy’s/Arby’s Group Inc. will retain 18.5% ownership of Arby’s valued at about $30 million, the company said in a statement. Atlanta-based buyout shop Roark will assume about $190 million in Arby’s debt.
(Reuters) – Wendy’s/Arby’s Group Inc said it will sell its struggling Arby’s Restaurant Group Inc to Roark Capital Group for about $130 million in cash.
Wendy’s/Arby’s will retain 18.5 percent ownership of Arby’s valued at about $30 million, it said in a statement.
Roark Capital will also assume about $190 million of Arby’s debt.
In January, Wendy’s/Arby’s said it plans to sell its Arby’s roast beef sandwich chain to focus on the Wendy’s hamburger business.
The two fast-food chains were combined in 2008 when billionaire investor Nelson Peltz’s Triarc Cos, Arby’s parent, bought Wendy’s for $2.2 billion to create the world’s third-largest publicly held fast-food chain. (Reporting by Arpita Mukherjee in Bangalore; Editing by Don Sebastian)