Multiconcept operator FAT Brands continued its spending spree by agreeing to acquire Twin Peaks, a polished casual, sports-oriented chain, from investment firm Garnett Station Partners.
This marks FAT Brands second acquisition in the last three months. In June, FAT Brands acquired Global Franchise Group, a company with five quick-serve restaurant concepts, for $442.5 million. And in August of 2020, FAT Brands acquired the Johnny Rockets chain for $25 million.
Valued at $300 million, the deal is expected to close by the end of September 2021, per a release announcing the transaction. FAT Brands will fund the deal with the proceeds of $250 million of new securitization notes and the issuance to the sellers of shares of Series B preferred stock.
Twin Peaks has 82 stores currently open, 6 additional stores due to open by year-end 2021, and another 18 under development over the next 18 months. “Following the recent acquisitions of Johnny Rockets and Global Franchise Group, this acquisition comes at a time when we’re seeking to expand our market segments into sports and polished casual dining,” said FAT Brands CEO Andy Wiederhorn. “[Twin Peaks] average unit volumes between $4.5 million and $6.5 million for new units is at the high end of industry growth standards. The exceptional unit economics and proven track record of the Twin Peaks brand has led to extraordinary demand for new store openings from new and existing franchisees. The current pipeline of new franchise locations as well as the large potential for global expansion of this successful brand is what brought us to the table and makes this a truly unique acquisition for FAT Brands. We’re pleased to have the support of Garnett Station Partners as we continue the expansion of Twin Peaks into new markets.”
Other restaurant chains within the FAT Brands portfolio include Round Table Pizza, Fatburger, Marble Slab Creamery, Great American Cookies, Hot Dog on a Stick, Buffalo’s Cafe & Express, Hurricane Grill & Wings, Pretzelmaker, Elevation Burger, Yalla Mediterranean and Ponderosa and Bonanza Steakhouses. FAT Brands franchises more than 2,000 units worldwide.