After months of speculation and rumor, struggling quick-service biscuit brand Bojangles’ Inc. announced Tuesday that it has entered into an agreement to be acquired.
New York-based investment firms Durational Capital Management and The Jordan Company will purchase Bojangles’ in an all-cash transaction, pending final approval. The deal, which has been unanimously approved by Bojangles’ board of directors, will give stockholders $16.10 per share.
No other financial details of the transaction were released. The deal is expected to close during the first quarter of next year.
“For the Bojangles’ family of employees, franchisees, and our customers, today’s announcement represents an exciting next phase for this great brand,” said Randy Kibler, Bojangles’ interim president and CEO, in a statement. “The new ownership group is committed to maintaining the qualities of this brand that have sustained it for over four decades.”
Kibler has helmed the Charlotte, N.C.-based chain since March, after CEO Clifton Rutledge resigned abruptly, citing personal reasons. Kibler had previously served as president, CEO and director of Bojangles’ Restaurants, the chain’s subsidiary, from 2007 to 2014.
In August, amid slumping same-store sales, Bojangles’ announced it would close 10 poorly performing stores, refranchise some 30 others and slow overall unit growth. The chain also pared down its menu items. The company had already shuttered eight franchised units during the first quarter of 2018.
After much fanfare upon opening, the company declared that its futuristic Biscuit Theater prototype, rolled out in early 2017, did not perform well.
Pending approval of the deal, Bojangles’ would join a large number of publicly held restaurant companies going private in recent months. Such transactions include Inspire Brands’ plan to purchase drive-in chain Sonic Corp. and its completed acquisition of Buffalo Wild Wings, as well as Cava Group’s pending acquisition of fast-casual chain Zoes Kitchen.