Dunkin’ in late July said it would close around 800 U.S. locations that had low sales volumes.
Photo: Lev Radin/Zuma Press
The parent of Dunkin’ and Baskin-Robbins said it has held early talks to go private in an acquisition by Inspire Brands, whose portfolio includes Arby’s, Buffalo Wild Wings and Jimmy John’s chains.
The acquisition offer comes as the coffee, doughnut and ice cream chain has wrestled with lower sales due to the Covid-19 pandemic. The company, whose market value is $7.3 billion based on Friday’s closing price, in late July said it would close around 800 U.S. locations that had low sales volumes and were mostly unprofitable before the pandemic.
Dunkin’ Brands Group Inc. on Sunday said there was no certainty any agreement will be reached, and that it wouldn’t comment further unless the two companies reached an agreement or terminated discussions. The New York Times first reported the talks on Sunday.
Dunkin’ Brands shares rose 18.3% in premarket trading.
The Quincy, Mass.-based company has more than 21,000 points of distribution in more than 60 countries. The franchiser doesn’t own or operate any stores. The company went public in 2011 after it was acquired by Bain Capital Partners LLC, the Carlyle Group and Thomas H. Lee Partners LP in 2006.
The company in 2018 dropped the word “Donuts” from its flagship brand due to its increased focus on beverages, which represents much of its sales.
Inspire Brands, founded in 2018, said it has $14.6 billion in sales with more than 11,000 restaurants. The company is part of the consumer-focused private-equity firm Roark Capital Group. The company declined to comment.
Write to Dave Sebastian at [email protected]
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