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By Dave Sebastian
Fat Brands Inc. has agreed to acquire Global Franchise Group, the company behind five fast-service restaurant brands, for $442.5 million in cash and stock of Serruya Private Equity Inc. and Lion Capital LLP.
With the deal, the Fatburger owner said Monday it will have more than 2,000 franchised and proprietary restaurants worldwide with combined annual sales of about $1.4 billion. Global Franchise Group franchises and operates Round Table Pizza, Great American Cookies, Hot Dog on a Stick, Marble Slab Creamery, and Pretzelmaker.
The acquisition would likely increase Fat Brands’ annual earnings before interest, taxes, depreciation and amortization by about $40 million to about $55 million to $60 million.
Fat Brands said it would fund the cash portion of the deal price through the issuance of a new range of notes and cash. It said it would also issue $25 million in common stock and $67.5 million in Series B cumulative preferred stock to sellers.
About 87% of Global Franchise Group’s restaurants are located in the US, according to Fat Brands.
The companies said they expect the deal to close by the end of July.
Fat Brands bought rival hamburger chain Johnny Rockets Group Inc. last year. for about $25 million.
Write to Dave Sebastian at [email protected]
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