FAT Brands Inc. to acquire Fazoli's for $130 million
FAT (Fresh. Authentic. Tasty.) Brands Inc. announced that it has agreed to acquire Fazoli’s, an Italian chain known for its freshly prepared pasta, Submarinos sandwiches, and unlimited signature breadsticks, for $130 million from funds under management by Sentinel Capital Partners. This acquisition brings to FAT Brands the largest premium QSR Italian chain in the U.S., and will be funded with cash from the issuance of new notes from the Company’s securitization facilities. The transaction is expected to close by mid-December 2021.
The planned acquisition of Fazoli’s further speaks to FAT Brands’ recent diversification of their restaurant portfolio, making a foray into the Italian quick-service dining category. With over 200 stores currently open and a development pipeline of 100 units over the next several years, the purchase of Fazoli’s will increase FAT Brands’ footprint to 2,300 franchised and corporate-owned stores around the world, bringing 2022 expected systemwide sales at FAT Brands to more than $2.1 billion. The addition of Fazoli’s, including the new stores due to open and under development, is expected to increase the Company’s post-COVID normalized EBITDA by approximately $14.5 to $15 million in 2022.