Arby’s buys Sonic chain for $2.3B

Arby’s boasts it has “the meats” and Tuesday the owner of Arby’s got a lot beefier by buying the hamburger drive-in chain Sonic.

Atlanta-based Inspire Brands, which owns Arby’s, Buffalo Wild Wings and other restaurant chains, is buying Sonic in a $2.3 billion deal that will dramatically boost its size and reach.

Sonic operates a chain of 3,500 restaurants with hundreds of franchisees, including 11 restaurants in Hamilton County, three in Cleveland, Tennessee three in Dalton, Georgia, and others in nearby Fort Oglethorpe, Rossville, Ringgold, Chickamauga, Dunlap, South Pittsburg, Tullahoma, Athens, Tennessee, Chatsworth and LaFayette, Georgia.

In a statement, Inspire officials called Sonic “an ideal fit for Inspire’s multibrand portfolio.”

They praised Sonic for its “unique brand positioning,” as well as its innovation — especially in its use of digital technologies — and its solid financial performance.

Inspire, which is one of the 10 largest restaurant companies in the United States, has branches in 16 countries.

The company is majority-owned by Atlanta-based Roark Capital Group, which owns companies and has a series of franchises that generate $32 billion in revenues, according to the firm’s website. Roark’s holdings include CKE Restaurants, which owns Carl’s Jr and Hardee’s, the Corner Bakery, and FOCUS Brands, whose holdings include Auntie Anne’s Pretzels, Carvel Ice Cream, Cinnabon and Schlotzsky’s.

“[Sonic is] an ideal fit for Inspire’s multi-brand portfolio.”

– INSPIRE OFFICIALS IN A STATEMENT

Inspire was formed early this year as the umbrella corporate management of several chains, the largest of which is Arby ‘s, with 3,400 restaurants, and Buffalo Wild Wings, which includes 1,250 restaurants. It also owns Rusty Tacos, which includes 25 restaurants.

The company has more than 150,000 employees.

The transaction is a stock deal based on a 19 percent premium to the closing price of Sonic stock on Monday, officials said. Inspire will pay $43.50 a share for the company.

Sonic is based in Oklahoma City and will continue to operate from there as a business unit of Inspire, officials said. Sonic, which calls itself “America’s Drive In,” is a 65-year-old chain.

Inspire has about $7.6 billion in sales, while Sonic has about $4.4 billion in revenues, according to the companies.