ARC Group, owner of Dick's Wings & Grill restaurant chain, will acquire Fat Patty’s, a four-unit concept with locations in West Virginia and Kentucky. The $12.3 million deal is expected to close August 31.
Fat Patty’s menu includes specialty burgers and sandwiches, wings, appetizers, salads, wraps, and steak and chicken dinners served in a family friendly, casual dining environment. Each restaurant has a full bar and several large, flat-screen televisions. According to unaudited financial information provided to ARC Group by Fat Patty’s, the Fat Patty’s franchise generated more than $11 million in revenue and $700,000 in net income during 2017, per a release announcing the deal.
This marks the second time in as many months that ARC has announced an acquisition. In July, ARC announced its plans to purchase Tilted Kilt, a sports pub franchise. The Tilted Kilt has 47 locations in operation across the United States and Canada. ARC Group is in the process of finalizing a financing plan that will enable it to complete the acquisition of Tilted Kilt within the next few months. The Tilted Kilt franchise generated almost $14 million in revenue during 2017.
As part of this deal, Ron Lynch, former president of Tilted Kilt, will continue on as a consultant to the company during a transitional period that’s excepted to span a year. Lynch has been president and CEO since 2005, when Tilted Kilt started with three non-franchised locations.
“As a result of this acquisition, we anticipate ARC Group’s combined annualized revenue run rate will be in excess of $15 million, and with our planned Tilted Kilt acquisition, we project ARC Group’s combined annualized revenue run rate will approach nearly $30 million,” said Seenu G. Kasturi, president and chief financial officer of ARC Group. “Overall, we have built a highly scalable and profitable organization, with aggressive growth plans – both organic and through accretive acquisitions.”
The 23-year-old Dick’s Wings has 15 restaurants in Florida and 5 restaurants in Georgia.