Wendy’s: End Of An Era

The Columbus Dispatch:

Billionaire investor Nelson Peltz, owner of Arby’s, bought Wendy’s International in a $2.3 billion deal that will combine the 2 chains and, for now, keep the headquarters of Wendy’s here, though jobs may be cut.

The all-stock deal ends the involvement of the Thomas family, which started the chain in Columbus in 1969.

Many people with a stake in Wendy’s International weren’t happy yesterday after the Dublin burger chain said it has agreed to be acquired by the parent of Arby’s.

Wendy’s signed a merger agreement with Triarc Cos., led by billionaire investor Nelson Peltz, ending an ordeal that began in 2005 when Peltz took a large stake in the company and started pushing for change.

Already agreed upon by the boards of directors of both companies, the $2.3 billion deal awaits shareholder approval and is expected to close in the second half of the year.

Employees expressed concern about their jobs. Restaurant owners were skeptical about joining with Arby’s. And the founder’s family didn’t take the news well.

Company namesake Wendy Thomas, daughter of founder Dave Thomas, called the outcome a ‘huge, huge disappointment.’ Thomas, her 3 sisters and her mother had been pulling for J. David Karam, a franchisee from Upper Arlington who had joined with two private-equity firms to bid for the company.

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