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Fat Brands, the owner of Fatburger and Johnny Rockets has made its second acquisition of the year.
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Last week, Fat Brands announced the acquisition of Twin Peaks from Garnett Station Partners for $300m, which marks its second acquisition of the year as reported by Restaurant Business. Fat Brands also recently acquired the Global Franchise Group for $442.5m.
It expects to close the deal for Twin Peaks within the month by making use of the $250m received from a recently completed securitized debt financing deal to pay for the chain.
The Twin Peaks franchise currently operates 82 locations and expects to open six more by the year end, with 18 further locations in the developmental pipeline. The brand has already opened two locations in Latin America in addition to its American locations, and has plans for a further six in Mexico City where it already has one location.
This acquisition will push Fat Brands’ system-wide sales to $1.8bn across 2,100 locations, most of which are franchised.
“Twin Peaks is a noteworthy addition for Fat Brands,” said Andy Wiederhorn, Fat Brands owner in a statement.
“Following the recent acquisitions of Johnny Rockets and Global Franchise Group, this acquisition comes at a time when we’re seeking to expand our market into sports and polished casual dining.”
Fat Brands has been acquiring smaller franchises since it went public. It started with the purchase of Johnny Rockets for $25m last year and is continuing this year with Global Franchise Group and Twin Peaks.
Fat Brands isn’t stopping there; there are plans to acquire more brands.
“This is not the end, I think, knock on wood, there will be another material acquisition in about a month or so,” said Wiederhorn in an interview after the Global Franchise purchase.
Garnett Station Partners invested in Twin Peaks in 2019 and saw the brand suffer during the COVID-19 pandemic. However, sales have recovered since then.
“The sale of Twin Peaks to Fat Brands marks a major milestone for us after a year of consistent sales growth as we work toward our vision of becoming a global-facing brand,” said Joe Hummel, Twin Peaks CEO in a statement.
“Fat Brands has a proven track record of scaling and introducing concepts to international markets.”
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