On June 13, Wendy's Wendy's Arby's ( WEN) agreed to sell its struggling Arby's chain to private equity group Roark Capital Group in deal that valued the sandwich chain at $430 million.


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.

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