Fat Brands finalizes acquisition of Twin Peaks sports bar chain
$300M purchase increases Fat Brands’ portfolio to 2,100 locations globally
The parent of Fatburger, Johnny Rockets and several limited-service chains, finalized the acquisition of Twin Peaks. Fat Brands’ $300M purchase from Garnett Station Partners was funded with $250 in proceeds from new securitization notes and shares of Series B preferred stock issued to the sellers.
Fat Brands’ empire has grown to 2,100 company and franchised stores globally with system sales of $1.8B. With the addition of the Twin Peaks, EBITDA will increase by about $25M to $30M.
“FAT Brands is committed to an aggressive growth strategy, which underlies our strong M&A activity over the last year,” said Andy Wiederhorn, Fat Brands chief executive. “When assessing potential acquisitions, we look to identify brands that not only complement our existing portfolio, but also deliver high average unit volumes and a strong growth pipeline. Twin Peaks checks all of these boxes. This is a brand that we can grow globally at a fast pace, and we look forward to building upon the strong growth that was achieved under Garnett Station Partners.”
Executives noted that this is the third acquisition over the past year, including the purchase of Johnny Rockets and Global Franchise Group, parent of five quick-serve brands, including Great American Cookies and Marble Slab Creamery. Fat Brands CEO suggests the company is in an ongoing quest to grow through M&A.
Wiederhorn added, “This is a brand that we can grow globally at a fast pace, and we look forward to building upon the strong growth that was achieved under Garnett Station Partners.”
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