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FAT Brands Plans to Acquire Johnny Rockets for $25 Million

Los Angeles — FAT (Fresh. Authentic. Tasty.) Brands Inc. has agreed to acquire the Johnny Rockets restaurant chain from an affiliate of private equity firm Sun Capital Partners, Inc. for approximately $25 million. The deal will be funded through cash on hand and proceeds generated from the company’s securitization facility. The purchase is expected to be completed in September 2020. With the acquisition of Johnny Rockets, FAT Brands will have more than 700 franchised and company-owned restaurants around the globe.

Johnny Rockets was founded in 1986 with its first location on Melrose Avenue in Los Angeles. Known for its 1950s diner-style décor, the chain serves up classic burgers and hand-spun ice cream shakes. Johnny Rockets currently has over 325 locations across the U.S. and internationally, including nine company-owned locations.

“FAT Brands is delighted to carry the torch from the affiliate of Sun Capital Partners, Inc., a global private equity leader with deep investment and operational experience, and run hard,” says Andy Wiederhorn, president and CEO of FAT Brands. “Similar to Fatburger, Johnny Rockets got its start in Los Angeles, and we couldn’t be more pleased to add another true staple in our home city to our portfolio. This acquisition is a transformative event for FAT Brands in terms of scale and brand awareness. We see a lot of synergy with Johnny Rockets and our current restaurant concepts and we are eager to take the brand to new heights.”

Duff & Phelps served as financial advisor to Sun Capital Partners, Inc. and Morgan, Lewis & Bockius LLP acted as legal counsel to Sun Capital Partners, Inc., Loeb & Loeb LLP acted as legal counsel to FAT Brands and Andersen Tax LLC served as tax advisor to FAT Brands Inc.

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 eight restaurant brands: Fatburger, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses, and franchises over 375 units worldwide. For more information, visit www.fatbrands.com and www.johnnyrockets.com.

 

 

SOURCE: FAT Brands

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