FAT Brands completes acquisition of Global Franchise Group, gains five restaurant brands
FAT (Fresh. Authentic. Tasty.) Brands Inc. has announced the completion of its acquisition of Global Franchise Group for $442.5 million from Serruya Private Equity and Lion Capital. As a result of the acquisition, FAT Brands has gained five new restaurant concepts—Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery, and Pretzelmaker. The transaction is the largest acquisition by a restaurant franchisor to date in 2021, and was funded with cash and stock, including $350 million in cash from newly issued notes and cash on hand, $67.5 million in Series B preferred stock, and $25 million in common stock.
The acquisition of Global Franchise Group marks an important milestone for FAT Brands, increasing the company’s portfolio from approximately 700 units to more than 2,000 units worldwide. Based on current projections and assumptions, including realization of expected synergies and return to pre-COVID restaurant sales, the acquisition is expected to increase FAT Brands’ annual EBITDA by approximately $40 million to $55-$60 million, and increase the Company’s annual revenues from approximately $36 million to over $100 million. In addition to adding five new restaurant concepts, the acquisition included a manufacturing facility in Atlanta, GA that supports various Global Franchise Group brands and provides incremental revenue opportunities.