The deal did not come as a surprise as Wendy's has said it was looking for strategic alternatives for Arby's, which has trailed Wendy's performance. Under the terms of the deal, Wendy's will retain an 18.5% stake in Arby's, which has more than 3,600 restaurants systemwide. Wendy's will receive $130 million in cash at the closing of the deal; its 18.5% stake is expected to be valued at around $30 million.
Atlanta-based Roark Capital Group will assume around $190 million in debt related to the Arby's chain, which mainly consists of capital lease and sale-leaseback obligations. Wendy's expects to realize an income tax benefit of around $80 million over the next few years. The deal was expected to close early in the third quarter.