American quick service restaurant (QSR) chain Wendy’s has completed the sale of its 12.3% ownership interest in Inspire Brands, the owner of Arby’s, Buffalo Wild Wings and R Taco, back to the company for $450m.
The transaction has received approval from the board of directors of Wendy’s and represents a 38% premium on its previous valuation of the investment.
According to the QSR chain, the deals offer future flexibility to invest in the growth of its brand and increase its share repurchase programme.
Wendy’s board of directors chairman Nelson Peltz said: “The sale of our stake in Inspire Brands for $450m is a great return on this investment for our shareholders.
“Over the past seven years, Wendy’s and its shareholders have benefitted from more than $100m in distributions and the monetisation of this investment carries a 38% premium over its most recent valuation.”
As part of the transaction, Wendy’s is expecting approximately $335m of cash proceeds net of tax. The company closed the transaction on 16 August.
The company is also currently in the process of developing additional plans to use the proceeds from this transaction.
Wendy’s president and chief executive officer Todd Penegor said: “We have benefited from and enjoyed our partnership with Inspire, and we wish Paul Brown and the team continued success in the future.
“The opportunity to monetise our investment in Inspire Brands will allow us to invest in future growth for the Wendy’s brand and company, which is our top priority.
“The flexibility provided by the sale proceeds and the additional share repurchase authorisation through 2019 will also allow us to continue to create value for our shareholders.”