Private Equity Donuts

Issue 42

10.26.20 - Dunkin' Brands, the parent company of Dunkin' (or Dunkin’ Donuts) and Baskin-Robbins, is in "preliminary discussions" to be acquired by private equity-backed Inspire Brands. The potential deal would see Inspire purchasing Dunkin' Brands at $106.50 per share, the Times first reported, citing two people with knowledge of the negotiations – making the deal worth roughly $8.8 billion.

"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," Karen Raskopf, chief communications officer of Dunkin' Brands, stated.

About two years ago, Dunkin' dropped the "Donuts" from its name in an effort to rebrand itself as a "beverage-led" company, expanding its selection of food and drinks further than the traditional donut shop it once was. Earlier this year, Dunkin' announced it was permanently closing about 800 restaurants — with more than half the locations being in Speedway gas station convenience stores.

The brand was taken private back in 2005. Dunkin' Donuts and Baskin-Robbins was sold by Pernod Ricard SA to three private equity firms including Bain Capital, Carlyle Group and Thomas H. Lee Partners for $2.4 billion. The company went public in 2011.

Source: Bloomberg