CHARLOTTE, N.C. – Durational Capital Management LP and The Jordan Co. L.P. 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 the 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 percent 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.”
The company will no longer hold a previously scheduled third quarter earnings call on Nov. 8, however the company will release third quarter financial results after the market closes and will file a quarterly report with the US Securities and Exchange Commission on or before Nov. 9.
For the second quarter ended July 1, 2018 Bojangles’ reported a 0.8 percent decline in company-operated comparable restaurant sales while franchised comparable restaurant sales climbed 0.1 percent.
Revenues for the second quarter increased to $140.5 million compared with $136.8 million reported in the prior-year fiscal quarter. Bojangles’ attributed the increase to a net additional 26 system-wide restaurants at July 1.
Net income was $2.4 million or $0.06 per diluted share in the second quarter compared to $8.4 million or $0.22 per share in the year-ago quarter.