Fat Brands Inc. has completed its acquisition of Global Franchise Group for $442.5 million from Serruya Private Equity and Lion Capital. As a result of the acquisition, Fat Brands has gained five new restaurant concepts – Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery and Pretzelmaker. The transaction is the largest acquisition by a restaurant franchisor to date in 2021, and was funded with cash and stock, including $350 million in cash from newly issued notes and cash on hand, $67.5 million in Series B preferred stock and $25 million in common stock.
“This acquisition is our largest deal yet, and further diversifies our iconic restaurant portfolio into new restaurant segments and categories. As our acquisitions have grown from small chains to global restaurants, FAT Brands is poised to better position itself as a multi-concept operator in the franchise restaurant business,” said Fat Brands CEO Andy Wiederhorn. “Serruya Private Equity and Lion Capital were excellent partners in bringing this transaction to completion. Serruya has been a longtime supporter of our vision and we are grateful to be working with partners who share our enthusiasm for this diverse market.”
Fat Brands’ other notable acquisitions include Johnny Rockets in 2020 and Elevation Burger in 2019.