Back to News
Mergers & Acquisitions

FAT Brands to Acquire Global Franchise Group

|
Published: June 30th, 2021
The Fatburger parent agrees to buy quick-service restaurant chains owner Global Franchise Group for $442.5 million in cash and stock from Serruya Private Equity and Lion Capital.

FAT Brands Inc. (FAT) on June 28 said it agreed to buy quick-service restaurant chains owner Global Franchise Group LLC for $442.5 million in cash and stock from private equity firms Serruya Private Equity Inc. and Lion Capital LLP.

Global Franchise Group owns five chains — Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker.

Los Angeles-based FAT Brands will pay $350 million in cash funded by the issuance of a new series of notes and cash on hand. Serruya and Lion Capital also will receive $25 million in common stock and $67.5 million in Series B preferred stock.

The sellers acquired Global Franchise in 2018 from Levine Leichtman Capital Partners LLC for an undisclosed amount.

The acquisition increases FAT Brands’ franchised and company-owned restaurant count to 2,000 globally and its annual sales to about $1.4 billion, the buyer said in a statement on June 28.

“We have been very acquisitive in recent years, seeking to add strong and growing restaurant brands to our portfolio,” FAT Brands CEO Andy A. Wiederhorn said in the statement. “The five new restaurant concepts have been very resilient coming out of the pandemic and will complement our existing brands.”

The company also bought ’50s diner-themed Johnny Rockets burger chain from private equity firm Sun Capital Partners Inc. for $25 million in August.

FAT Brands expects the Global Franchise deal to close by the end of July.

The company’s stock closed up 12.9% at $15.04 per share near midday on June 28.

Editor’s note: The original version of this article was published earlier on The Deal’s premium subscription website. For access, log in to TheDeal.com or use the form below to request a free trial.

More From Mergers & Acquisitions

Mergers & Acquisitions

Drinks With The Deal: NYU's Rob Jackson and Yale's John Morley

By David Marcus
|
Published: September 16th, 2021
Rob Jackson, a former SEC commissioner and current NYU Law professor, and John Morley, a professor at Yale Law School, say SPACs should be treated more stringently by the SEC and discuss their current research projects.
Mergers & Acquisitions

Restaurant Dealmaking Makes Comeback

By Nikitha Sattiraju
|
Published: September 13th, 2021
With the restaurant industry beginning to recover from the pandemic, strategic buyers and financial sponsors are back at the table for what's shaping up to be a record year in dealmaking.
Mergers & Acquisitions

Drinks With The Deal: Lande Spottswood of Vinson & Elkins

By David Marcus
|
Published: September 2nd, 2021
V&E's Lande Spottswood discusses the energy sector's recent evolution and the implications for both private equity and strategic buyers on the Drinks With The Deal podcast.