Bojangles' (BOJA) Acquired Today, Keybanc Wonders if Additional Bidders Come Forward

(updated to add analyst name)

Bojangles' (NASDAQ: BOJA) announced today that it has entered into a definitive agreement to be acquired by Durational Capital Management LP and The Jordan Company, L.P. Under the terms of the agreement, Durational Capital Management LP and The Jordan Company, L.P. will acquire the Company in an all cash transaction. Bojangles’ stockholders will receive $16.10 per share, representing a 39% premium to the closing share price of February 12, 2018, a day prior to initial speculation regarding a potential transaction involving Bojangles' and a premium of approximately 30% to the 90-day volume weighted average price ending on February 12, 2018. The offer represents a 15% premium to the closing share price of September 27, 2018, a day prior to a published report that Bojangles’ is exploring strategic alternatives.

Keybanc analyst Eric Gonzalez wonders if additional bidders come forward: "We calculate that the agreed upon price of $16.10 represents a take-out valuation of approximately 11.75x and 12.75x EV/EBITDA on a TTM and NTM basis, respectively. If we were to apply the same multiple that Inspire Brands' is paying for Sonic, it would equate to a $21/share takeout price. Thus, we wonder about the potential for an additional bidder to come forward."

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