News

Bojangles sold for $16.10 a share

November 6, 2018

Durational Capital Management LP and The Jordan Company LP have agreed to acquire fast food chain, Bojangles' in an all cash transaction that will give stockholders $16.10 per share, a news release said. The transaction represents a 39 percent premium to the closing share price of Feb. 12, 2018, before speculation began about a possible transaction.

The release said the offer represents a 15 percent premium to the closing share price of Sept. 27, 2018, a day before a report that Bojangles' was exploring "strategic alternatives." The company's board unanimously approved by approved the deal, expected to be completed in the first quarter of fiscal year 2019. 

Upon closing of the transaction, Bojangles' will continue to be operated as an independent, privately-held company and will remain based in Charlotte, North Carolina. 

"For the Bojangles' family of employees, franchisees and our customers, today's announcement represents an exciting next phase for this great brand. The new ownership group is committed to maintaining the qualities of this brand that have sustained it for over four decades," Bojangles Interim President and CEO Randy Kibler, said in the release. 

Bojangles Director and Nonexecutive Chair William Kussell said the board has been evaluating several strategic alternatives over the last several months. 

"Bojangles' has a differentiated offering, a talented team of employees and dedicated franchisees that are committed to their businesses and their communities," said Ian Arons, partner at The Jordan Company, in the release. "We are excited to invest in a company with such great growth potential, and we believe that with our and our partners' support, Bojangles' will be well-positioned for long-term success."

Bojangles' has approximately 766 restaurants, of which 325 were company-operated and 441 were franchised restaurants. The chain is primarily located in the Southeastern United States.