Fatburger and Hurricane Grill & Wings parent company Fat Brands announced the intention to acquire Global Franchise Group from Serruya Private Equity, Inc. and Lion Capital LLP for $442.5 million in cash and stock. Global Franchise Group franchises and operates quick-service brands Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker. The transaction is expected to close in July.
With the acquisition, Fat Brands will own 2,000+ company and franchise-owned restaurants globally with annual total sales of $1.4 billion.
“This acquisition is a key strategic milestone for FAT Brands,” Andy Wiederhorn, President and CEO of FAT Brands said in a statement. “We have been very acquisitive in recent years, seeking to add strong and growing restaurant brands to our portfolio. Now that the economy is emerging from COVID-19 and restaurants are rapidly recovering, we are pleased to have reached this agreement to incorporate a powerhouse restaurant franchising group with the support of Serruya Private Equity and Lion Capital. The five new restaurant concepts have been very resilient coming out of the pandemic and will complement our existing brands. Furthermore, we will acquire GFG’s manufacturing operations, which will provide greater efficiencies and incremental revenue opportunities to our company.”
Last September, Fat Brands acquired retro-themed diner chain Johnny rockets from Sun Capital for $25 million.
Sheppard, Mullin, Richter & Hampton LLP and Greenberg Traurig, LLP acted as legal counsel to FAT Brands. Bryan Cave Leighton Paisner LLP acted as legal counsel to Serruya Private Equity and Lion Capital.
Fat Brands CEO Andy Wiederhorn first hinted at a new acquisition on the horizon to Nation’s Restaurant News in which he said that Fat Brands is in major acquisition mode and is looking to round out their portfolio with pizza and dessert concepts. Stay tuned for more details in a soon to be published interview with Wiederhorn.
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