The international restaurant franchisor has expanded its portfolio with this latest deal.
FAT Brands Inc., the parent company of several restaurant franchises including Fatburger, Buffalo’s Cafe, and Hurricane Grill & Wings, has completed the acquisition of Johnny Rockets for the purchase price of approximately $25m.
The brand was acquired from an affiliate of private equity firm Sun Capital Partners, Inc., and now raises FAT Brands’ global network to more than 700 restaurants in over 30 countries. System-wide sales across the entire network exceed $700m.
“We are thrilled to successfully complete the acquisition of Johnny Rockets, a transformative event for FAT Brands, and are eager to drive further growth for the brand,” said Andy Wiederhorn, president and CEO of FAT Brands.
“The expansion of our whole business securitization facility further enhances our liquidity and financial flexibility and demonstrates the confidence that institutional investors have in our platform. We continue to scale our business through strategic acquisitions that complement our current brands and are pursuing other attractive opportunities in this environment.”
The transaction was funded with proceeds from an increase in FAT Brands’ securitization facility, which was increased by $40m on September 21 following the sale of Series 2020-2 Fixed Rate Asset-Backed Notes.