FAT Brands Inc., parent of the Fatburger fast-casual brand, has agreed to acquire casual-dining Hurricane Grill & Wings for $12.5 million, the companies said Wednesday.
Los Angeles-based FAT Brands, which recently went public and agreed to acquire Ponderosa and Bonanza steak chain parent Homestyle Dining LLC, said West Palm Beach, Fla.-based Hurricane Wings & Grill offers a broad consumer base. It has more than 60 units in eight states.
“We see Hurricanes as a wonderful complement to our Buffalo’s Cafe and Buffalo’s Express brands,” said Andy Wiederhorn, FAT Brands president and CEO, in a statement, “and look forward to expanding the brand’s footprint in both new and existing markets through our extensive franchisee network.”
Wiederhorn said Hurricane Grill has a new fast-casual brand, Hurricane BTW, that specializes in burgers, tacos and wings. With that brand’s “significant development pipeline,” he said the company would diversify into more fast-casual venues.
John Metz, Hurricane Grill president and CEO, said: “Joining the FAT Brands Inc. family will make Hurricane Grill & Wings and Hurricane BTW significantly more competitive in today’s landscape. We believe that this transaction will enable us to leverage FAT Brands’ proven expertise and realize our global growth potential.”
FAT Brands said it would fund the acquisition with cash on hand and third-party financing. The deal is expected to close before year’s end.
FAT Brands said the combined company’s franchisees will operate about 350 restaurants around the globe, with systemwide sales of more than $360 million.
Fat Brands Inc. on Oct. 23 completed its $24 million, Regulation A+ IPO and started trading publicly, making it the first restaurant company to go public using new rules enabling small companies to raise money from investors. The IPO gave the company a valuation of $120 million.
In September, FAT Brands Inc. agreed to acquire Homestyle Dining LLC, the owner of the Ponderosa and Bonanza steak chains. The company agreed to pay $10.5 million for Homestyle.
Wiederhorn, through his Fog Cutter Capital Group Inc., acquired Fatburger in 2003 and Buffalo’s Cafe in 2011. The company since created a limited-service version, Buffalo’s Express, which is now cobranded inside Fatburgers.
FAT Burger said Hurricane’s would complement its Buffalo’s Cafe brand and give them a combined 75 restaurants.
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