CHARLOTTE, N.C. – Durational Capital Management LP and The Jordan Co. L.P. have entered a definitive agreement to acquire Bojangles’ Inc. for $594 million. Bojangles’ serves Southern-style menu items such as scratch-made biscuit breakfast sandwiches and fried chicken.
Under terms of the agreement, Durational Capital Management and The Jordan Co. will acquire Bojangles’ in an all-cash transaction in which stockholders will receive $16.10 per share, representing a 39% premium to the closing share price of Feb. 12, 2018.
“In consultation with our outside advisors, the board of directors has been evaluating several strategic alternatives over the last several months,” said William A. Kussell, director and non-executive chairman of Bojangles’. “We are confident that this agreement offers a promising opportunity to realize the highest value for our stockholders while providing a strong path forward for the Bojangles’ brand, its employees, franchisees, and loyal customers.”
Bojangles’ includes 766 system-wide restaurants, including 325 company-operated units and 441 franchised restaurants, primarily located in the Southeastern United States.
“Bojangles’ is an iconic brand with an authentic Southern heritage and a deeply loyal following,” said Eric Sobotka, managing partner at Durational Capital Management. “We have admired the brand and its high-quality and craveable food for years, and we look forward to partnering closely with the employees and franchisees to drive its future growth and continued success.”
Bojangles’ sustained a loss of $2,712,000 in the third quarter ended Sept. 30, which compared with income of $6,889,000, equal to 19c per share on the common stock, in the same period a year ago. Revenues totaled $138,667,000, up from $136,042,000.
In the nine months ended Sept. 30, net income totaled $4,417,000, or 12c per share, down 81% from $22,865,000, or 62c, in the same period a year ago. Net revenues increased 2% to $416,662,000 from $406,756,000.