Los Angeles — FAT (Fresh. Authentic. Tasty.) Brands Inc. has agreed to acquire Global Franchise Group, which franchises and operates a portfolio of five quick-service restaurant concepts — Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker — from Serruya Private Equity, Inc. and Lion Capital LLP, for $442.5 million in cash and stock. The transaction is expected to close by the end of July 2021.
With the acquisition of GFG, FAT Brands will have more than 2,000 franchised and company owned restaurants around the world with combined annual system-wide sales of approximately $1.4 billion. Approximately 87% of GFG’s stores are located in the United States.
“This acquisition is a key strategic milestone for FAT Brands. 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,” says Andy Wiederhorn, president and CEO of FAT Brands. “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.”
Duff & Phelps Securities, LLC served as financial advisor to GFG and Serruya Private Equity. 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 is a leading global franchising company that strategically acquires, markets and develops fast casual and casual dining restaurant concepts around the world. The company currently owns nine restaurant brands: Fatburger, Johnny Rockets, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises approximately 700 units worldwide. For more information, visit www.fatbrands.com.
Global Franchise Group, LLC is a strategic brand management company with a mission of championing franchise brands and the people who build them. GFG currently supports more than 1,400 franchised and corporate stores in 16 countries. Global Franchise Group, LLC is an affiliate of Serruya Private Equity, Inc. and Lion Capital LLP.
SOURCE: FAT Brands Inc.