Fat Brands Completes $ 300 Million Purchase of Twin Peaks
The owner of Johnny Rockets and Fatburger has finalized the purchase of Twin Peaks ./Photograph: Shutterstock
Fatburger and Johnny Rockets owner has another concept on his menu.
Fat Brands announced Friday that it has completed its $ 300 million purchase of Twin Peaks, the 82-unit sports bar chain. The deal concludes a summer that has seen Fat Brands more than double in size with $ 740 million in acquisitions that brought the total number of concepts under its umbrella to 14.
Los Angeles-based Fat Brands earlier this summer acquired franchise brand operator Global Franchise Group, which owns Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery, Pretzelmaker and Round Table Pizza. Earlier in the year, it acquired the 325-unit Johnny Rockets for $ 25 million.
Four years ago, Fat Brands operated only two concepts, Fatburger and Buffalo’s CafÃ© and Express.
The Twin Peaks acquisition, like the global franchise agreement, will be funded by debt. Acquisition will earn Fat Brands $ 1.8 billion in total system sales from 2,100, mostly franchise locations, and earnings before interest, taxes, depreciation and amortization, or EBITDA, of $ 25 to $ 30 million of dollars.
CEO Andy Wiederhorn doesn’t look like a stopping guy either. âFat Brands is committed to an aggressive growth strategy, which underpins our strong [merger and acquisition] activity over the past year, âhe said in a statement.
âWhen evaluating potential acquisitions, we seek to identify brands that not only complement our existing portfolio, but also offer high average unit volumes and a strong growth pipeline. Twin Peaks ticks all of these boxes. It’s a brand that we can grow globally at a rapid pace.