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FAT Brands to Acquire a Portfolio of Five QSR Brands

In a deal valued at $442.5 million, multiconcept operator FAT Brands will acquire Global Franchise Group, which franchises and operates a portfolio of five quick-service restaurant concepts, including Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker, from Serruya Private Equity and Lion Capital.

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, per a company release. Approximately 87% of GFG’s stores are in the United States. 

“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,” says Andy Wiederhorn, president and CEO of FAT Brands.

FAT Brands will fund the deal using a combination of cash and stock. FAT Brands will fund the cash portion of the purchase through the issuance of a new series of notes and cash on hand, per a release announcing the deal. FAT Brands will also issue to the sellers $25 million in common stock and $67.5 million in Series B cumulative preferred stock. The transaction is expected to close by the end of July 2021, subject to customary reviews, etc.

FAT Brands current portfolio of restaurants includes Fatburger, Johnny Rockets, Buffalo’s Cafe, Buffalo’s Express, Hurricane Grill & Wings, Elevation Burger, Yalla Mediterranean and the Ponderosa and Bonanza Steakhouse brands. The company franchises approximately 700 units worldwide.