A Canton-based company that includes one of the best-known brands in the country may be putting itself up for sale.
According to an article in the New York Times, Dunkin’ Brands is in negotiations with holding company Inspire Brands, with the plan being for Dunkin’ to be taken private at a price of $106.50 a share. The post says that if a deal is reached, it could be announced as early as later today and that based on the proposed 20-percent premium for the stock price, the value of Dunkin’ Brands could be somewhere around $8.8 billion.
From The New York Times:
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. The price would be a 20 percent 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. Its shares are up about 18 percent from a year ago.
The transaction would add Dunkin’ Brands to Inspire Brands’ portfolio, which includes Arby’s, Buffalo Wild Wings, Sonic and Jimmy John’s. Inspire is backed by the private equity firm Roark Capital.
In a statement on Sunday, Dunkin’ Brands said: “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.”
Source: New York Times