Fat Brands Inc. (FAT) - Get Report, owner of restaurant chain Fatburger and other brands, has agreed to buy the 1950s-themed restaurant chain Johnny Rockets. The acquisition will set Fat Brands back about $25 million.
Shares of Fat Brands soared more than 140% on August 13 on the news of the acquisition. Fat Brands plans to fund the purchase through cash on hand and proceeds generated from the company’s securitization facility. The buy is expected to be completed in September.
Johnny Rockets operates restaurants in 325 locations across the U.S. and internationally. With Johnny Rockets in its arsenal, Fat Brands will have more than 700 franchised and company-owned restaurants around the globe.
"This acquisition is a transformative event for Fat Brands in terms of scale and brand awareness," said Andy Wiederhorn, Fat Brands' president and CEO. "We see a lot of synergy with Johnny Rockets and our current restaurant concepts and we are eager to take the brand to new heights.”
Fat Brands owns Fatburger, Buffalo's, Hurricane Grill & Wings, Ponderosa & Bonanza, Elevation Burger, and Yalla Mediterranean.
“Similar to Fatburger, Johnny Rockets got its start in Los Angeles, and we couldn’t be more pleased to add another true staple in our home city to our portfolio," said Wiederhorn.
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