Nelson Peltz’s Trian Offers to Take Wendy’s Private in $1.4 Billion All-Cash Deal

DUBLIN, Ohio, Oct. 28 (TodayViralUSA) — Nelson Peltz’s Trian Fund Management and a group of partners have offered to take Wendy’s private in an all-cash deal valued at about $1.4 billion, putting a formal price on the activist investor’s months-long push to reshape the burger chain.

The non-binding proposal offers $7.35 a share, a premium of roughly 20% to Wendy’s closing price on Oct. 27. Wendy’s confirmed Wednesday that it had received the unsolicited offer.

Who is behind the bid

Trian is joined by Flynn Group, one of Wendy’s largest franchisees, along with investment firms BlueFive Capital and Sixth Street Partners. Trian and related parties already own about 16.3% of Wendy’s stock, according to the proposal letter filed with the Securities and Exchange Commission, and plan to roll those shares into the deal rather than sell them.

The group said the purchase would be funded with equity and would not require new debt or be subject to a financing condition. It said it expects Wendy’s existing securitization financing to remain in place after the deal closes.

Board committee to weigh the offer

Wendy’s board formed a committee of independent directors after Trian disclosed in a February filing that it was exploring options for the company. That committee will evaluate the proposal with its financial and legal advisers, Wendy’s said, adding that there is no assurance it will pursue the deal or any other strategic outcome. The company said shareholders do not need to take any action and that it does not plan to comment further unless disclosure becomes necessary.

Peltz said at the time of the February filing that the chain was “currently undervalued.” Wendy’s has said it remains focused on its turnaround plan, known as Project Fresh, Restaurant Dive reported.