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.
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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