Dunkin’ Is Being Sold to Private Equity for Nearly $9 Billion, According to Report

Dunkin’ Is Being Sold to Private Equity for Nearly $9 Billion, According to Report

Dunkin’ Brands, the parent company of the Dunkin’ and Baskin Robbins chains, is expected to sell itself to a private equity-backed company, Inspire Brands, according to a report.

“The deal being discussed, which could be announced as soon as Monday, would take Dunkin’ Brands private at a price of $106.50 a share, said two people with knowledge of the negotiations, who spoke on condition of anonymity because the talks are confidential,” reports the New York Times.

Inspire Brands writes about itself, “Inspire Brands is a multi-brand restaurant company whose portfolio includes more than 11,000 Arby’s, Buffalo Wild Wings, SONIC Drive-In, Rusty Taco, and Jimmy John’s restaurants worldwide. The company was founded in 2018 and operates Support Centers in Atlanta, Minneapolis, Oklahoma City, and Champaign. We are creating a family of brands with maverick qualities, each with their own distinct positioning, guest experience, and product offering.”

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The price of Dunkin’ be would  a 20% premium over the company’s closing price on Friday, and implies a company valuation of about $8.8 billion. Dunkin’s share price has more than doubled since March, as investors took heed of its success in building up its app and drive-through services.

In a statement on Sunday, Dunkin’ Brands said to the NYT: “Dunkin’ Brands confirms that it has held preliminary discussions to be acquired by Inspire Brands. There is no certainty that any agreement will be reached. Neither group will comment further unless and until a transaction is agreed.”