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 Café 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. “Fat Brands is committed to an aggressive growth strategy, which underpins our strong [merger and acquisition] activity over the past year, ”he said in a statement.
“When 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.