US fast food chain Wendy’s has agreed to sell its ownership interest in Inspire Brands, Inc back to the parent company for $450mn.
Wendy’s will let go of its 12.3% stake in Inspire, which owns 4,600 restaurant brands including Arby’s, Buffalo Wil Wings, and R Taco for a 38% premium based on the firm’s previous evaluation of the investment.
Nelson Peltz, Chairman of the Board of Directors, said: “The sale of our stake in Inspire Brands for over $450mn is a great return on investment for our shareholders.”
President and CEO of Wendy’s, Todd Pengor, added: “We have benefitted from and enjoyed our partnership with Inspire, and we wish Paul Brown and the team continued success in the future. The opportunity to monetise our investment in Inspire Brands will allow us to invest in future growth for the Wendy’s brand and company, which is our top priority.
“The flexibility provided by the sale proceeds and the additional share repurchase authorisation through 2019 will also allow us to continue to create value for our shareholders.”
Wendy’s, which has been in operation for almost 40 years, currently operates across 6,537 locations in North America and beyond, including company-owned premises and franchises.