As part of the deal, Inspire Brands will assume Dunkin’ Brands debt. The deal will also take Dunkin’ from being a publicly traded company to a private one. The transaction is expected to close by the end of 2020.
Currently there are more than 12,500 Dunkin’ and roughly 8,000 Baskin-Robbins restaurants around the world, per a release announcing the deal. Following the completion of the transaction, Dunkin’ and Baskin-Robbins will operate as distinct brands within Inspire.
Backed by private equity firm Roark Capital, Inspire Brands’ has made a variety of high-profile acquisitions in recent years. In 2019, for example, for example, Inspire Brands acquired Jimmy John’s. One year earlier, the Inspire Brands acquired Sonic Drive-In. Inspire Brands’ restaurant portfolio also includes Arby’s and Buffalo Wild Wings, among others.
The deal comes after Dunkin’ had spent some time consolidating its system of stores. The company reported a net closure of 466 Dunkin’ locations in the U.S., including 425 limited-menu units in Speedway locations, in a filing that reports the company’s results for its third fiscal quarter of 2020. Globally, the company reported a net closure of 553 Dunkin’ and Baskin-Robbins locations.
For that third quarter, which ended September 26, Dunkin’ Brands reported a 1.6% increase in revenues. This was due to a 0.9% increase in U.S. same-store sales at Dunkin’ locations and a 6.5% increase in same-store sales at Baskin-Robbins locations. These improvements came despite lower traffic levels due to COVID-19. The traffic decline was offset by increased check averages, per the company.