Fat Brands completes $300 million acquisition of Twin Peaks—its second major purchase this yearFat Brands completes $300 million acquisition of Twin Peaks—its second major purchase this year

Joanna Fantozzi

Fat Brands announced the completion of the $300 million acquisition of casual-dining ‘breastaurant’ sports bar brand Twin Peaks on Friday after initially agreeing to the purchase in September.

This is the Fat Burger and Hurricane Grill & wings parent company’s second purchase in 2021, after completing the acquisition of Global Franchise Group in July, which included mainly snack and dessert brands like Hot Dog on a Stick, Marble Slab Creamery, Pretzelmaker, and Great American Cookies. Before that, Fat Brands’ last major purchase was 50s diner-themed Johnny Rockets, which was completed in September 2020.

“Fat Brands is committed to an aggressive growth strategy, which underlies our strong M&A activity over the last year,” Fat Brands CEO Andy Wiederhorn said in a statement. “When assessing potential acquisitions, we look to identify brands that not only complement our existing portfolio, but also deliver high average unit volumes and a strong growth pipeline, Twin Peaks checks all of these boxes. This is a brand that we can grow globally at a fast pace, and we look forward to building upon the strong growth that was achieved under Garnett Station Partners.”

This latest transaction was funded with $250 million in principal amount of new securitization notes and the issuance to the sellers of shares of Series B preferred stock, according to Fat Brands.

Back in December, Wiederhorn hinted to Nation’s Restaurant News that they are firmly in M&A mode and would be looking to acquire a fast-casual or casual-dining brand next, around the same size as Johnny Rockets.

With the acquisition of Twin Peaks, Fat Brands’ portfolio tops 2,100 franchised and corporate-owned restaurants with combined sales of $1.8 billion.

FAT Brands plans to grow at 10% (or 60-70 new restaurants) per year.

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