Sonic Corp. to be Acquired by Inspire Brands for $2.3 Billion

Oklahoma City and Atlanta — On September 25, 2018, Sonic Corp. and Inspire Brands, Inc. entered into a definitive merger agreement under which Inspire will acquire Sonic for $43.50 per share in cash in a transaction valued at approximately $2.3 billion including the assumption of Sonic’s net debt.

Inspire is a multi-brand restaurant company whose portfolio includes more than 4,700 Arby’s, Buffalo Wild Wings and Rusty Taco locations worldwide. Following the completion of the transaction, Sonic will be a privately-held subsidiary of Inspire and will continue to be operated as an independent brand.

The agreement has been unanimously approved by Sonic’s board of directors.

“Sonic is a highly differentiated brand and is an ideal fit for the Inspire family,” says Paul Brown, chief executive officer of Inspire Brands. “We have tremendous respect for Sonic’s exceptional team of employees and franchise owners, who have built one of the industry’s most distinctive restaurant brands.”

“This value-maximizing transaction validates the actions we have taken over the last year to grow traffic and improve sales while delivering differentiated offerings and superior guest service,” says Cliff Hudson, CEO of Sonic Corp. “This transaction delivers significant, immediate and certain value to Sonic shareholders, and the private ownership structure will provide important benefits to our guests, franchisees and employees.

The transaction is subject to the approval of Sonic shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals, and will close by the end of the year.

Guggenheim Securities, LLC is serving as financial advisor to Sonic, and Shearman & Sterling LLP is serving as its legal counsel. White & Case LLP is serving as legal counsel to Inspire.

SONIC, America's Drive-In is the nation's largest drive-in restaurant chain with more than 3,600 locations. For more information, visit www.sonicdrivein.com.

Inspire Brands is an Atlanta-based multi-brand restaurant company whose portfolio includes more than 4,700 Arby’s, Buffalo Wild Wings and Rusty Taco locations worldwide. The company is majority-owned by affiliates of Roark and was founded in 2018. For more information, visit www.InspireBrands.com.

Since inception, affiliates of Roark have invested in 65 franchise/multi-unit brands, which collectively generate $32 billion in annual system revenues from 32,000 locations in 50 states and 81 countries. For more information, visit www.roarkcapital.com.

SOURCE: Sonic Corp. and Inspire Brands, Inc.

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