Chicken chain Bojangles’, which has 766 restaurants, has entered into a definitive agreement to be acquired by Durational Capital Management LP and The Jordan Company, L.P. for $593.7 million, the company announced Tuesday morning. Under the terms of the agreement, the companies will acquire Bojangles’, Inc. in an all-cash transaction valued at $16.10 per share, which represents a 39 percent premium to the closing share price of February 12—a day prior to initial speculation regarding a potential transaction. It’s also a premium of about 30 percent to Bojangles’ 90-day volume weighted average price ending on February 12.
The offer represents a 15 percent premium to the closing share price of September 27—the day before it surfaced that Bojangles’ was exploring strategic alternatives.
Upon closing of the transaction, expected in the first quarter of fiscal 2019, Bojangles’ will transition to a privately held company. It will continue to be operated as an independent brand based in Charlotte, North Carolina. The Jordan Company, founded in 1982, is a middle-market private equity firm that has managed funds with original capital commitments in excess of $11 billion since 1987. Durational Capital Management LP, founded in 2017, is an investment firm that said it invests in high-quality consumer companies.
“For the Bojangles’ family of employees, franchisees, and our customers, today’s announcement represents an exciting next phase for this great brand. The new ownership group is committed to maintaining the qualities of this brand that have sustained it for over four decades,” said Randy Kibler, Bojangles’ interim president and CEO, in a statement.
“In consultation with our outside advisors, the Board of Directors has been evaluating several strategic alternatives over the last several months. We are confident that this agreement offers a promising opportunity to realize the highest value for our stockholders while providing a strong path forward for the Bojangles’ brand, its employees, franchisees, and loyal customers,” added William A. Kussell, director and non-executive chairman of Bojangles’.
Bojangles’ has been a public company since 2015, when private-equity firm Advent International Corp took it to the stock market.
This past quarter, Bojangles’ unveiled a “restaurant portfolio optimization program” designed around two areas in the short-term, closing underperforming stores and refranchising, as it looks to strengthen corporate dynamics. Bojangles’ announced in its second-quarter review that it planned to close about 10 corporate restaurants in Q3 and refranchise another 30 restaurants, primarily in Tennessee, to one of its largest franchisees.
“Bojangles’ is an iconic brand with an authentic Southern heritage and a deeply loyal following,” said Eric Sobotka, managing partner at Durational Capital Management, in a statement. “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.”
“Bojangles’ has a differentiated offering, a talented team of employees and dedicated franchisees that are committed to their businesses and their communities,” added Ian Arons, partner at The Jordan Company. “We are excited to invest in a company with such great growth potential, and we believe that with our and our partners’ support, Bojangles’ will be well-positioned for long-term success.”
