Wendy's corporate agrees to buyout

Parent company Wendy’s International announced April 24 that it had signed a definitive merger agreement with Triarc Cos. Inc., franchisor of the more than 3,700 Arby’s restaurants worldwide.

If approved, shareholders of Wendy’s (NYSE: WEN) will receive 4.25 shares of Triarc Class A common stock (NYSE: TRY) for each share of their Wendy’s stock. The deal is valued at more than $2.3 billion, with Triarc paying just less than $27 a share for Wendy’s 87 million outstanding shares.

Triarc Chairman Nelson Peltz and Vice Chairman Peter May, who own shares representing 35 percent of Triarc’s voting power, have committed to vote in favor of the transaction.

“Working together with the Wendy’s team, we expect to improve margins significantly at Wendy’s company-owned stores,” said Roland Smith, CEO of Triarc, in a news release. Smith also will become CEO of the Wendy’s brand if the deal is approved.

Wendy’s International had been considering a sale since May 2007, when its board of directors formed a special committee to investigate the possibility.

Sam Hamra, founder and CEO of Wendy’s of Missouri, which operates 25 restaurants in Missouri, said he doesn’t expect any changes at the local level, for franchisees or customers.

“We’ll continue to do business as a franchisee in this market as we always have in the past,” Hamra said, pointing out that stock prices of both Wendy’s and Triarc jumped by more than a dollar after the announcement. “With Peltz’s reputation, it’s a plus that he’s stepped in. I don’t think it will have anything but a positive effect on our operation.”

Peltz also owns significant portions of stock in Heinz and Kraft.

The combined company would trade under the WEN symbol on the New York Stock Exchange, and Arby’s and Wendy’s will continue to operate autonomously.[[In-content Ad]]