Investment firm ICV Partners announced Thursday that it’s completed its previously announced acquisition of Diversified Restaurant Holdings, Inc.—a large Buffalo Wild Wings franchisee with 64 locations across five states.
As part of the deal, ICV dealt 22 of those units, in Florida and Massachusetts, to Buffalo Wild Wings’ parent company, Inspire Brands. Also, JK&T, a Buffalo Wild Wings franchisee purchased earlier by ICV, executed a 15-store area development deal with Inspire to build new restaurants in “agreed upon locations.” ICV said it will combine the remaining DRH and JK&T Wings sports bars, which it acquired in October 2019. The result will be the largest Buffalo Wild Wings franchisee in the fleet at more than 80 venues.
When ICV bought JK&T Wings, the company owned 42 locations, primarily in Michigan, with additional stores in Louisiana and Massachusetts.
ICV took control of DRH in an all-cash transaction valued at about $130 million, including the assumption outstanding indebtedness and transaction expenses. DRH’s common stockholders received $1.05 per share in cash. DRH was taken off NASDAQ with the move. Its CEO, Michael Ansley, resigned when the deal was made.
“We are very pleased to complete this transaction and are enthusiastic to deploy our expertise to help grow the Buffalo Wild Wings brand,” said Ira Moreland, managing director of ICV, in a statement. “DRH is a strong platform and the company has solidified its position in a number of important markets. In combination with our earlier investment in JK&T Wings, we now operate over 80 BWW restaurants across five states and look forward to working with the company’s management team to further build this strong platform in new geographies. Buffalo Wild Wings is a very well-known and admired brand and we see tremendous opportunities ahead that will continue to enhance their operations as we embark on this next stage of growth.”
Added Kent Ward, CEO of JK&T: “This new partnership with ICV is an exciting move, as they have extensive experience in building and growing the companies in which they invest. ICV’s ownership brings additional resources and skills that will enable us to grow the BWW brand and help enhance the customer experience.”
Roark Capital-backed Inspire also directs Jimmy John’s, Arby’s, Sonic Drive-In, and fast casual Rusty Taco.
When Inspire acquired Jimmy John’s in September, the company had 11,200-plus units and $14 billion in annual system sales, making it the country’s fourth-largest restaurant company.
Inspire was formed in February 2018 following Arby’s $2.9 billion blockbuster for Buffalo Wild Wings.