FAT Brands to Purchase Global Franchise Group for $442.5M

FAT Brands today announced it will acquire Global Franchise Group for $442.5 million by the end of July.

Round Table Pizza, one of the five quick-service restaurant concepts purchased by FAT Brands (Photo Courtesy of Round Table Pizza)
Round Table Pizza, one of the five quick-service restaurant concepts purchased by FAT Brands (Photo Courtesy of Round Table Pizza)

The parent company behind popular brands including Johnny Rockets, Hurricane Grill & Wings and Fatburger, FAT (Fresh. Authentic. Tasty) Brands, today announced it will acquire Global Franchise Group, adding five quick-service restaurant concepts to its portfolio.

Under the deal, ownership of more than 2,000 company-owned and franchised restaurants including Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker will transfer from Serruya Private Equity and Lion Capital LLP to FAT Brands for $442.5 million in cash and stock. The cash portion will be issued via cash and notes, while Global Franchise Group also will release $25 million in common stocks and $67.5 million in Series B cumulative preferred stock to FAT Brands. The purchase is expected to close by the end of July.

“Now that the economy is emerging from COVID-19 and restaurants are rapidly recovering, we are pleased to have reached this agreement to incorporate a powerhouse restaurant franchising group with the support of Serruya Private Equity and Lion Capital,” President and CEO of FAT Brands Andy Wiederhorn said in a press release.

The combined Global Franchise Group restaurants to be acquired produce annual systemwide sales of about $1.4 billion. FAT Brands projects this number to increase annually by $40 to $60 million.

“The five new restaurant concepts have been very resilient coming out of the pandemic and will complement our existing brands,” Wiederhorn added in the release. “Furthermore, we will acquire GFG’s manufacturing operations, which will provide greater efficiencies and incremental revenue opportunities to our company.”

For more information about company mergers and acquisitions, click here.

RELATED CONTENT

Sustainable

Starbucks, McDonald’s, Wendy’s and Panera Want Sustainable Cups

What do Starbucks, McDonald’s, Wendy’s and Panera Bread have in common? They all want sustainable cups. Today, the four brands announced plans to reduce single-use waste by working toward circular...

Yum China 1200x800 1

Yum China Goes Big With Digitalization

Yum China is spending a pretty penny to invest in the future of its restaurants—which involves transforming them digitally through cutting-edge technology.

- Advertisement -

- Advertisement -

- Advertisement -

TRENDING NOW

- Advertisement -

- Advertisement -