Burger behemoth: Atlanta parent of Arby's inks deal for Wendy's

Wendy's International Inc. announced Thursday that it signed a $2.3 billion merger agreement with Atlanta-based Triarc Companies Inc., franchisers of the Arby's restaurant system.

The deal creates the third largest quick-service restaurant chain in the U.S., with approximately $12.5 billion in annual sales and more than 10,000 units.

The companies will continue to operate as separate business units, with Arby's in Atlanta and Wendy's in Dublin, Ohio, but there will be a consolidated support center in Atlanta to "oversee all public company responsibilities and other central service functions."

Content Continues Below

The deal has been approved by the boards of both companies. It is an all-stock transaction where Wendy's shareholders will receive 4.25 shares of Triarc stock for each share of Wendy's stock they own.

Roland Smith, 53, Triarc CEO will retain that role and add Wendy's CEO to his titles.

Kerrii Anderson, current Wendy's CEO is not mentioned in the release. She could not be immediately reached for comment Thursday morning.

Triarc also will change its name to incorporate the name Wendy's.

The impact on jobs at the Dublin headquarters is not known at this time, but the release puts annual savings from the elimination of duplicate corporate functions and streamlined support services at $60 million.

James V. Pickett, Wendy's chair and member of the special committee charged with exploring a sale, said the committee wanted to see that shareholders received a premium for their shares.

"We believe this transaction with Triarc is in the best interests of all of Wendy's constituencies and represents superior value to what the board anticipates Wendy's would have generated as an independent company," he said.

Smith said the new company hopes to improve margins at company-owned stores and improve efficiency to create savings for the combined brands.

"Through the execution of major operating improvements and the realization of synergies, we expect to generate substantial value for shareholders," he said.