Nelson Peltz's Trian offers $1.4bn to take Wendy's private

Summarised from 2 outlets · Updated 28 Oct, 14:38 · Archive

Nelson Peltz's Trian Fund Management has offered $1.4 billion to buy Wendy's for $7.35 per share in cash.

Nelson Peltz's Trian Fund Management, together with investment firms BlueFive Capital and Sixth Street Partners and Wendy's franchisee Flynn Group, has offered $1.4 billion to buy Wendy's at $7.35 per share in cash. This represents a 20% premium over Wendy's closing price on Tuesday. Wendy's shares jumped 15% to 16% on the announcement.

Wendy's has faced significant challenges. The company's stock has fallen 65% to 70% over the past five years, and it has reported same-store sales declines for six straight quarters. The burger chain has also gone through multiple chief executives, with Bob Wright, formerly of Potbelly, joining as CEO in May. Rival Burger King has executed a successful turnaround, pushing Wendy's into third place among US burger chains.

Trian, which holds a roughly 16% stake in Wendy's, believes the chain is at 'a critical juncture' and needs significant capital investment. The activist fund views taking the company private as a way to execute a complex turnaround strategy more easily. Wendy's is scheduled to report third-quarter earnings on 5 November.

How it is being reported

• Wendy’s stock soars on report struggling chain could go privateIts bid marks a roughly 20% premium over Wendy’s closing price on Tuesday of about $1.2 billion, and comes after years of Trian pushing for a sale of the struggling burger franchise.New York Post · 28 Oct, 14:21
• Wendy's shares jump 15% as Nelson Peltz's Trian offers $1.4 billion to buy burger chainWendy's has endured a tough two-year stretch as diners eat out less often.CNBC · 28 Oct, 13:21

In this story: Nelson Peltz · Trian Fund Management · Wendy's · Flynn Group · BlueFive Capital · Sixth Street Partners · Bob Wright · Burger King

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