CHARLOTTE, NC (WBTV) - Bojangles’ will be acquired by two New York firms, Duration Capital Management LP and The Jordan Company, L.P., the company announced Tuesday morning.
“Bojangles’ majority stockholder executed a customary voting agreement whereby it agreed (among other things) to vote its shares in favor of the acquisition,” the company posted on its website.
The transaction, an all-cash deal, is expected to be finalized in the first quarter of 2019. Bojangles' will continue operating as an independent, privately-held company based in Charlotte, N.C. until closing the transaction.
Stockholders will receive $16.10 per share, representing a 39% premium to the closing share price of February 12, 2018.
“For the Bojangles’ family of employees, franchisees, and our customers, today’s announcement represents an exciting next phase for this great brand," said Randy Kibler, Bojangles’ Interim President and CEO. “The new ownership group is committed to maintaining the qualities of this brand that have sustained it for over four decades.”
Bojangles' was founded in Charlotte in 1977 and has 766 system-wide restaurants primarily located in the southeastern U.S.
“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," said Ian Arons, partner at The Jordan Company.
In August, Bojangles’ reported that its quarterly profit had slumped over 71 percent.
Clifton Rutledge abruptly stepped down as CEO in March after about four years as Bojangles’ CEO, the Charlotte Observer reports. Randy Kibler, who ran the company from 2007-2011, stepped in as interim CEO.