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Fat Brands completes purchase of Johnny Rockets chain of diners

Burger-centric franchisor becomes big industry player with $700M in systemwide sales

Fat Brands announced it had completed the acquisition of Johnny Rockets from an affiliate of Sun Capital Partners for approximately $25M. The company used funds from a securitization, which was increased yesterday by $40M through the sale of Series 2020-2 fixed fate asset-backed notes. Cadence Group, Inc., a fintech securitization platform, exclusively structured the offering.

Los Angeles-based Fat Brands has amassed several restaurant concepts, including Hurricane Grill & Wings and Ponderosa, that are household brands and well-known. The restaurant company operates and franchises 700 restaurants globally, with annual sales in excess of $700M.

By snatching up growth chains, it became a force to reckon with in the restaurant industry. Most recently, it has acquired Yalla Mediterranean, Elevation Burger and (now) Johnny Rockets.

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The agreement to purchase Johnny Rockets was executed and announced in August. Fat Brands expects a substantial amount of synergies and costs savings through the acquisition at its new cadence of $700M in annual sales, as reported last month. Primarily, the company expects a substantial amount of purchasing leverage.

[Related article: Fat Brands to acquire Johnny Rockets]

Loeb & Loeb LLP and Foley & Lardner LLP served as legal advisors to Fat Brands in the financing of the purchase. Cadence Group, Inc. retained Manatt, Phelps & Phillips, LLP as legal advisors.

Photo credit: Fat Brands (featured preview image: logo)

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