The market has been long speculating on the deal that Inspire Brands will settle to buy Dunkin over completely. And they made the official announcement for Inspire Brands to pay the highest deal for Dunkin with $11.3 billion last week. As a result, the price per share went up to $106.50 per share which is about 30% higher. Moreover, this deal also includes Dunkin’s debt of $3.42 billion.
“By joining Inspire, these brands will add complimentary guest experiences and occasions to our current portfolio,” said Inspire CEO Paul Brown. “Further, they will strengthen Inspire through their scaled international platform and robust consumer packaged goods licensing infrastructure, as well as add more than 15 million loyalty members.”
Subsequently, this acquisition is expected to result in $11 billion in sales and push Inspire Brands to $26 billion in systemwide sales.
Moreover, it is also speculated that Inspire will expand Dunkin’ international platform to Mexico. This is will be done to increase its overseas presence via a master franchising model.
The shared services model of Inspire will benefit Dunkin’ and its franchisees. In addition to having more brands in its portfolio, this deal has many advantages. For instance, Dunkin’s 15 million membership doubles Inspire’s membership. In other words, there is now plenty of data for the sales and marketing teams to work with.
Barclays served as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel for Inspire. BofA Securities and Ropes & Gray LLP advised Dunkin’. The deal will close by the end of 2020.
Source: Franchise Times
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