Global Franchisor To Beef Up Burger Portfolio with World-Wide All-American Restaurant Chain
FAT (Fresh. Authentic. Tasty.) Brands Inc. (NASDAQ: FAT) 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 with annual system-wide sales exceeding $700 million.
Johnny Rockets was founded in 1986 with its first location on the iconic Melrose Avenue in Los Angeles, California. Known for its 1950s diner style décor, the chain serves up freshly-made, classic burgers and indulgent, hand-spun real ice cream shakes. Johnny Rockets currently has over 325 locations across the U.S. and internationally, including 9 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,” said 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 (NASDAQ: FAT) 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, please visit www.fatbrands.com.
Founded in 1986 on iconic Melrose Avenue in Los Angeles, Johnny Rockets is a world-renowned, international restaurant franchise that offers high quality, innovative menu items including items including Certified Angus Beef cooked-to-order hamburgers, Boca Burger, chicken sandwiches, crispy fries and rich, delicious hand-spun shakes and malts. With nearly 325 franchise and corporate locations in over 25 countries around the globe, this dynamic lifestyle brand offers friendly service and upbeat music contributing to the chain’s signature atmosphere of relaxed, casual fun. To learn more about the Johnny Rockets brand, please visit the brand website at www.johnnyrockets.com, or follow us on Facebook, Twitter and Instagram.