ICV Partners in New York has completed the previously announced acquisition of Diversified Restaurant Holdings in Troy, one of the largest franchisees for Buffalo Wild Wings with 64 sports bars across five states. ICV acquired Diversified in an all cash transaction valued at about $130 million, including the assumption of outstanding indebtedness and transaction expenses.
With the completion of the transaction, JK&T, which ICV invested in, executed a 15-store area development agreement to build new stores in agreed upon locations and sold the Buffalo Wild Wings sports bars in Florida and Massachusetts to Inspire Brands, a multi-brand restaurant company whose portfolio includes more than 11,200 Arby’s, Buffalo Wild Wings, SONIC Drive-In, Rusty Taco, and Jimmy John’s Sandwiches locations worldwide. ICV will combine the remaining Diversified and JK&T Wings sports bars, which it acquired in October, making the combined company that largest franchisee of Buffalo Wild Wings.
“We are very pleased to complete this transaction and are enthusiastic to deploy our expertise to help grow the Buffalo Wild Wings brand,” says Ira Moreland, managing director of ICV. “DRH is a strong platform, and the company has solidified its position in a number of important markets. In combination with our earlier investment in JK&T Wings, we now operate over 80 BWW restaurants across five states and look forward to working with the company’s management team to further build this strong platform in new geographies. Buffalo Wild Wings is a very well-known and admired brand, and we see tremendous opportunities ahead that will continue to enhance their operations as we embark on this next stage of growth.”
In October, ICV made a significant investment in JK&T Wings, a leading franchisee of Buffalo Wild Wings, in partnership with management. At the time of the investment, JK&T owned 42 Buffalo Wild Wings restaurants located primarily in Michigan with additional locations in Louisiana and Massachusetts.
Buffalo Wild Wings was founded in 1982. It has more than 1,200 restaurants across 10 countries.
Duff and Phelps acted as exclusive financial advisor to Diversified, and Dykema served as legal counsel. DLA Piper served as legal counsel for ICV in connection with the transaction.
ICV is a private investment firm that was founded in 1998.