Bojangles accepts buyout offer from Durational Capital, The Jordan Company
Charlotte, N.C.-based Bojangles’ announced November 6 that it would be acquired by Durational Capital Management and The Jordan Company for $16.10 per share all-cash, or about $594M based on shares outstanding as of the last quarterly filing by Bojangles’. The buyout offer represents a 39-percent premium over the closing share price February 12, 2018, when there was initial speculation of a potential transaction, said the 766-unit chicken and biscuit chain, and a 15-percent premium to the share price September 27, 2018, the day before a report by Reuters supporting such speculation.
Speculation had surfaced for several months that the chain would be sold, based on recent poor financial performance and slumping sales performance, including negative comparable sales reulsts throughout its first two quarters in 2018. Rumors of a Bojangles’ sale culminated in a report by Reuters September 28 indicating that the company was seeking strategic alternatives.
“Bojangles’ is an iconic brand with an authentic Southern heritage and a deeply loyal following,” said Eric Sobotka, Durational Capital managing partner, in a joint statement with The Jordan Company. “We have admired the brand and its high quality and craveable food for years, and we look forward to partnering closely with the employees and franchisees to drive its future growth and continued success.”
BofA Merrill Lynch acted as financial advisor, along with Houlihan Lokey. Shearman & Sterling LLP acted as legal counsel to Bojangles’ and its Board of Directors. Bojangles’ joins a long list of restaurant chains acquired this year, and a growing list of public companies, including Sonic Corp., being acquired by Inspire Brands, and Jamba Juice, acquired by Focus Brands, a Roark Capital subsidiary.
Photo credit: Bojangles’