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FAT Brands Buys Fazoli’s

Multiconcept operator FAT Brands will add Fazoli’s to its growing portfolio of companies. In a deal valued at $130 million that is expected to close in mid-December, FAT Brands will acquire Fazoli’s from Sentinel Capital Partners, which purchased the Italian quick-service restaurant chain in July 2015.

Fazoli’s has more than 200 stores systemwide and 100 units in its development pipeline, per a release announcing the transaction. Through its existing units and those in development, FAT Brands expects Fazoli’s to add Carl Howard hs smCarl Howard $14.5 million to $15 million in revenue. The deal comes after Fazoli’s reported having a strong 2020 and CEO Carl Howard discussed what drove the chain’s success in a Forbes interview. Howard also spoke of Fazoli’s plans for ghost kitchens and virtual brands in an October webcast hosted by restaurant development + design. “From co-branding to virtual kitchens to menu development opportunities, we see great value in being a part of FAT Brands,” Howard says.

When the deal becomes final, FAT Brands will have a total of 2,300 franchised and corporate units systemwide and the company will have sales of more than $2.1 billion. “We have been eyeing this category for some time; however, we were waiting for the right brand – one that is high-growth, with almost all restaurants having drive-thru access, in addition to, the synergies that we will achieve adding Fazoli’s to our portfolio of brands,” says FAT Brands CEO Andy Wiederhorn.

This marks the latest in a series of acquisitions by FAT Brands. In September, for example, FAT Brands acquired Twin Peaks, a polished casual, sports-oriented chain, from investment firm Garnett Station Partners. And in June FAT Brands purchased 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.

Overall, FAT Brands owns 15 restaurant concepts: Round Table Pizza, Fatburger, Marble Slab Creamery, Johnny Rockets, Twin Peaks, 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.