Biglari Holdings targets auto-parts chain

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The parent company of Steak n Shake restaurants is angling to acquire a stake in the Advance Auto Parts chain worth tens of millions of dollars.

Biglari Holdings Inc. has made an offer to swap its stock for up to 1.4 million shares in the Roanoke, Va.-based national retail chain. The stake would be worth almost $65 million if shareholders in Advance Auto Parts take up Biglari on its offer.

The offer was worth $46.12 per share in Advance stock, a small premium to the Friday closing price of $45.10. Biglari shares, meanwhile, closed Friday at $391.25.

But the value of the offer fell well below the going price for Advance shares Monday morning as Biglari Holdings tumbled more than 8 percent.

The selloff was fueled by a proposed incentive package, also unveiled Friday, that would pay Biglari 25 percent of the company’s annual book-value growth above 5 percent—a package critics are likely to find extremely generous, particularly for a man who has railed against excessive CEO pay.

The exchange ratio for the offer is one share of Advance for 0.1179 shares of Biglari Holdings, meaning the value of the deal will fluctuate each day until the offer expires on May 27.

The move suggests Biglari Holdings CEO Sardar Biglari believes shares in his company are overvalued compared to those of Advance Auto Parts, which operates more than 3,200 stores.

Biglari took over Indianapolis-based Steak n Shake Co. in a 2007 proxy fight, helped return its restaurants to profitability, then transformed it into a holding company for a diverse range of investments. The renamed company, now based in San Antonio, has moved aggressively to invest or take over other firms, including a small Michigan insurer.

The offer for Advance shares is the Biglari's first foray into the retail space. If shareholders accept the offer, Bigarli Holdings would own just 1.5 percent of the outstanding shares of Advance.

The company said it will exchange as many shares as are offered, up to the maximum number of 1.4 million.


  • Biglari Holdings targets auto-parts chain
    Great post. Thanks for the information.

    Auto Part Index


  • fiscal q2 earnings
    Please see the Letter to Shareholders 2009...

    We will issue press releases on fiscal 2010 quarterly results after the market closes on
    January 29, May 21, and August 13. The 2010 annual report will be posted on our website on
    Saturday, December 11, 2010.
  • Why?
    Why would any invest in this guys company when it's obvious the only one he plans to have benefit is him? Go into a Steak N Shake and see the picture he put up of himself in all of the restaurants.
  • fiscal Q2 earnings - where are they
    isn't sns / bh very late in releasing their fiscal Q2 earnings? wonder if / when we'll see them.

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  1. Now if he'd just stay there...

  2. Daniel - what about the many US citizens who do NOT follow what the Bible teaches? The Hindus, Jews, Muslims and others who are all American citizens entitled to all rights as Americans?? This issue has NOTHING to do with "What the Bible says..." Keep all Churches separate from State! Pence's ongoing idiocy continues to make Indiana look like a backwards, homophobic state in the eyes of our nation. Can't we move on to bigger issues - like educating our kids?

  3. 1. IBJ should link to the referenced report. We are in the age of electronic media...not sharing information is lazy. Here is a link http://www.in.gov/gov/files/Blue_Ribbon_Panel_Report_July_9_2014.pdf 2. The article should provide more clarity about the make-up of this panel. The commenters are making this item out to be partisan, it does not appear the panel is partisan. Here is a list of the panel which appears to be balanced with different SME to add different perspectives http://www.in.gov/activecalendar/EventList.aspx?view=EventDetails&eventidn=138116?formation_id=189603 3. It suggests a by-pass, I do not see where this report suggests another "loop". 4. Henry, based on your kneejerk reaction, we would be better off if you moved to another state unless your post was meant as sarcasm in which case I say Well Done. 5. The article and report actually indicates need to improve rail and port infrastructure in direct contradiction to Shayla commentary. Specifically, recommendation is to consider passenger rail projects... 6. People have a voice with their elected officials. These are suggestions and do not represent "crony capitalism", etc. The report needs to be analyzed and the legislature can decide on priorities and spending. Don't like it, then vote in a new legislature but quit artificially creating issues where there are none! People need to sift through the politics and provide constructive criticism to the process rather than making uninformed comments in a public forum based on misinformation. IBJ should work harder to correct the record in these forums when blatant errors or misrepresentations are made.

  4. Joe ... Marriage is defined in the Bible ... it is mentioned in the Bible often. Marriage is not mentioned once in the US or Indiana Constitution ...

  5. Daniel - Educate me please: what does the Bible have to do with laws? If the government wasn't in the business of marriage to begin with, then it wouldn't have to "define" marriage at all. Marriage could be left as a personal, religious, or otherwise unregulated action, with no ties to taxes, legal status, etc. Then people could marry whomever they want, and all this silliness would go away. Remember to vote Libertarian in November.